Even, fresh concerns about China's economic recovery too impacted the Indian market.
The Nifty too fell 99.45 pts at 18,534.40.
The Sensex opened weak at 62,839.97 pts declining 130 pts.
During the day, it lost nearly 568 pts at 62,401, a day low, before closing at 62,622.24, sliding 346.89 pts from its previous close.
The Nifty registered days high and low at 18,603.90 and 18,483.85 pts respectively.
In sectoral indices, Energy was a major hit, down 1.20 pc followed by Metal by 1.16 pc, Oil and Gas by 1.04 pc and Utilities by 1 pc.
In scrips, Axis Bank was a major loser, falling by 2.44 pc to Rs 914.70 followed by SBI by 2.07 pc to Rs 580.55, Reliance Industries by 1.77 pc to Rs 2474.70, HDFC by 1.67 pc to Rs 2648 and HDFC Bank by 1.57 pc to Rs 1611.35.
While the gainers were Bharti Airtel by 4.78 pc to Rs 857.50, Tech Mahindra by 2.08 pc to Rs 1122, Asian Paints by 1.67 pc to Rs 3196 and Sun Pharma by 1.60 pc to Rs 974.50.
The Mid Cap rose by 0.54 pc and Small Cap by 0.68 pc.
In 30 scrips, 11 advanced while 19 declined.
Asian Market remained negative today as Australian ASX fell by 1.54 pc followed by Shanghai by 0.61 pc, Hang Seng by 1.94 pc and Nikkie by 1.41 pc.