Negative cues from Asian markets, expectation of a US rate hike, weakening monsoon and a falling rupee caused the BSE Sensex to fall below the 25,000 mark on Monday and close at its lowest ever in 15 months.
At the end of the day the 30-scrip index was 308 points down at 24,893.81. The borad based NSE Nifty cracked crucial 7,600-mark by tumbling 96.25 points or 1.26 % to 7,558.80 -- its lowest closing since July 15, 2014.
During the day, the rupee had fallen to 66.85 against the American currency at the forex market.
Sell-off in Shanghai shares, which opened for trading after four days also hit sentiment here.
Meanwhile, China has revised its 2014 growth figure to 7.3% from the previously released figure of 7.4%. "Data from China continued to rattle investor nerves and the same was reflected in day's performance of Asian markets," said Satya Prakash Goel, director of Bonanza Portfolio.
Stock market, which was trading range-bound in afternoon deals turned bearish after reports emerged that Met Department has said that monsoon rains in the country may be 82% of Long-term Average versus 88% previous forecast.
However after trading hours, the department clarified that that there won't be any revision and Long-term Average for the monsoon will be maintained at 88%.
The Sensex after opening positive at 25,302.98, advanced to a high of 25,387.32 in early trade. However, it succumbed to profit-booking and slipped below the 25,000-mark to touch a low of 24,851.77 points, before ending 308.09 points or 1.22% down at 24,893.81.
This is the index's lowest closing since June 4, 2014, when it had settled at 24,805.83.
Axis Bank, Vedanta, ICICI Bank, Hindalco, Lupin, BHEL, Dr Reddy's, Coal India, Sun Pharma, NTPC, L&T, SBI, Tata Steel, GAIL, Infosys, HUL, HDFC Bank, ITC, Bharti Airtel, Bajaj Auto and Hero MotoCorp were among the major BSE losers.
Sectorwise, BSE Healthcare index suffered the most by falling 2.57%, followed by metal 2.31%, bankex (2.10%), power (1.92%), capital goods (1.89%), realty (1.75%) and PSU (1.64%).
In broader markets, mid-cap index fell by 2.19%, while small-cap ended 1.76% lower.
Among other Asian markets, Shanghai ended 2.52% down, Hong Kong's Hang Seng dived 1.23%, while Japan's Nikkei ended 0.38% higher.
On the other hand, European markets were in a better shape in opening trade.