Investors' wealth has tumbled by over Rs 5.82 lakh crore in three days of market decline.
Feeble global cues, foreign fund outflows and concerns over policy tightening by central banks have led to the selling pressure, experts said.
Declining for the third straight session on Monday, the 30-share BSE benchmark Sensex nosedived 1,023.63 points or 1.75 per cent to close at 57,621.19.
In three days, the benchmark has tanked 1,937.14 points.
Amid the weak sentiment, the market capitalisation of BSE-listed companies tumbled Rs 5,82,272.23 crore in three days to stand at Rs 2,64,82,633.52 crore.
"Markets traded under pressure and lost over one and a half per cent, tracking feeble global cues. After a flat start, the benchmark inched gradually lower as the day progressed and finally settled closer to the day's low," said Ajit Mishra, VP - Research, Religare Broking Ltd.
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He further said global headwinds have again started impacting the sentiment.
HDFC Bank was the biggest laggard in the 30 frontline companies pack, tumbling 3.65 per cent, followed by L&T, Bajaj Finance, Bajaj Finserv, HDFC, Kotak Bank and Wipro.
In the broader market, the BSE midcap index declined 1.25 per cent and smallcap index dipped 0.75 per cent.
"Domestic markets are volatile ahead of the state elections, witnessing a steep fall led by FII selling and weak global cues," said Vinod Nair, Head of Research at Geojit Financial Services.
US bourses were under pressure as strong US jobs data gave rise to fears of sharper-than-expected Fed rate hikes, resulting in a spike in the bond yields, he added.
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"The volatility in the market is likely to continue due to high chances of interest rate lift-off by the RBI given domestic inflation and policy tightening by global central banks," Nair said.
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