The market closed on sharp notes on Thursday with the Sensex down by 807.07 points or 3.4 percent at 22951.83.
Nifty, on the other hand, slipped 239.35 points or 3.3 percent at 6976.35.
Tata Motors, BHEL, Adani Ports, ONGC and Hindalco were top losers in the Sensex while Cipla, Bharti Airtel and Dr Reddy's were gainers.
State Bank of India (SBI) disappointed analysts' with December quarter earnings with standalone profit falling 61.7 percent year-on-year to Rs. 1,115 crore on higher provisions. Profit was supported by lower other income.
The country's largest bank said advances grew by 12.9 percent to Rs. 13.91 lakh crore while deposits increased by 10.7 percent to Rs. 16.71 lakh crore in the quarter ended December 2015.