The BSE Sensex fell 3.6 percent on Wednesday to its lowest level in two years, ahead of the expiry of derivative contracts, as investor confidence in the domestic and global economy weakened.
List of problems are increasing by each passing day; inflation is growing, GDP growth is expected to be lower and rupee has depreciated to its lowest, I think the slide was on the cards, said Jagannadham Thunuguntla, head of research, SMC Investments and Advisors Limited.
At 12:46 p.m. (0716 GMT), the 30-share BSE index was down 2.89 percent at 15,613.58 points. It earlier touched 15,478.69 -- its lowest since Nov. 3, 2009. All its components were in the red.
The broader 50-share NSE index was down 2.78 percent at 4,679.15 points.