At the closing bell on Tuesday, the BSE Sensex tanked 498 points on losses in IT and bank stocks to end at 55.268.49, while the Nifty index fell below the 16,500 mark to close at 16,483.85.
Bajaj Finserv was the big winner of the day, jumping 6%, while Infosys saw its stock drop 3%.
Heavyweight technology stocks dragged India's blue-chip share indexes lower on Tuesday, ahead of earnings reports from several large-cap companies, with investors also bracing for a likely sharp interest rate hike in the United States this week.
Asian markets were also on tenterhooks ahead of the likely 75-basis-point Fed rate hike, while a profit warning from U.S. retailer Walmart dampened sentiment.
Helping cut losses on the Nifty 50 was a 3.7% rise in financial services firm Bajaj Finserv on plans to issue bonus shares and split its stock.
After heavy foreign outflows every month since November, Indian equities have received a net $52.95 million of inflows this month till Monday. For the month so far, the Nifty and the Sensex are up about 4.5% each.
The Nifty IT index slid 2.3% and was the worst performer among sub-indexes, with IT major Infosys dropping 3%.
Earlier, Bajaj Auto on Tuesday reported an 11 per cent year-on-year (YoY) rise in standalone net profit at Rs 1,173 crore for the June quarter compared with Rs 1,061 crore in the year-ago quarter.
Revenues from operations rose 8 per cent YoY to Rs 8,005 crore for the June quarter compared with Rs 7,386 crore in the corresponding quarter last year.
Asian Paints Ltd on Tuesday reported an 80.39 per cent increase in its consolidated net profit to Rs 1,036.03 crore for the first quarter ended on June 30, 2022, as the business grew both in volume and value terms.
The company had posted a net profit of Rs 574.30 crore during the April-June quarter of the previous fiscal, Asian Paints said in a regulatory filing.
(with inputs from agencies)