The market continued to crumble during closing trade, as the indices saw a significant dip on Tuesday evening. The Sensex plunged by 561.22 points to 34,195.94, while Nifty saw a 168.30-point dip to 10,498.25.
Shares of Lupin and Tata Motors incurred maximum losses among Nifty stocks, falling more than five percent.
Meanwhile, market experts claimed the slump would continue in the days to come, owing to a fall in global markets.
"There is a selling pressure and there is no new buying emerging. So first, the scenario will stabilize at some point in time. The scenario will stabilize when the valuations become attractive, then we will see new buying emerging. Till that time, we are in the midst of huge volatile markets and this will remain for some days," market expert Sunil Shah told ANI.
Experts also believe that the tax on long-term capital gains (LTCG), which Finance Minister Arun Jaitley reintroduced in the Budget 2018-19, is also a possible reason why the stock markets are rallying in red, even as global trends remain the major driving force.
Earlier on Tuesday morning, the Sensex crashed to 1,240.45 points lower, with the 30-share BSE down 3.57 percent to 33,516.71, Nifty 369.60 points lower at 10296.90.