The benchmark Sensex reversed its three-month rally by recording the fourth-biggest fall of 435 points on the BSE on Wednesday on renewed worries about the world's largest economy after US President Barack Obama remarked that the economies will take a long time to rebound.
The 30-share Sensex fell by 435.07 points at 14,522.84 after hitting the day's low of 14,447.02 on heavy selling in last 30 minutes of trading due to worries about the US President's remarks.
In a similar fashion, the wide-based National Stock Exchange index cracked the crucial 4,400 points level to trade at 4,356.15, losing 161.65 points. Before the close, the Nifty touched the day's low of 4,332.80 points.
Market participants were withdrawing their investment from the market, fearing that a similar run may not be repeated till the Budget on July 6, brokers said.
The selling spree happened as President Barack Obama, ahead of his final dose to the economy, said the unemployment rate will rise to 10 per cent in the US, the largest market for India's software business.