The market breadth was also pathetic as more than 6 shares declined for every share rising on the BSE.
The Indian markets continued to bleed profusely on March 9 amid an all-out price war between Saudi Arabia and against onetime ally Russia and rising coronavirus concerns.
The benchmark indices saw the biggest single-day fall ever intraday as well as on closing basis. The BSE Sensex fell as much as 2,467.44 points to 35,109.18, while the Nifty50 breached its psychological 10,300 mark intraday, falling 695 points to 10,294.45 intraday.
At close, the Sensex was down 1,941.67 points or 5.17 percent at 35,634.95 and the Nifty50 fell 538 points or 4.90 percent to 10,451.50.
Broader markets were also caught in a bear trap with the BSE Midcap and Smallcap indices falling 4.7 percent and 4.2 percent respectively.
The market breadth was worrisome as more than 6 shares declined for every share rising on the BSE.
Investors lost Rs 6.84 lakh crore in a single day on March 6.
More than Rs 21 lakh crore of market capitalisation eroded from February 20 when the market first entered the bear territory on February 20.
The benchmark indices corrected around 15.5 percent from their record highs in January and fell nearly 15 percent from February 20.
The global situation continued to dampen the sentiment, though the market has arrived at attractive valuations with a lot of stock-picking opportunities, experts believe.
"I would wait for some more consolidation of at least 3 days in which the low does not get violated. The crisis is not about India. The big problem was the sharp fall seen in US Bond Yields due to coronavirus fears, and overnight development in crude oil added more weight. Hence, the fall in Nifty is largely due to what is happening in the globe," Atul Suri, Founder & CEO, Marathon Trends – PMS said in an interview to CNBC-TV18.
European markets - Germany's DAX, France's CAC and Britain's FTSE fell 6-7 percent amid double whammy effect of oil price war and rising cases of the novel coronavirus in European countries.
Asian counterparts closed down in the range of 3-7 percent, while the Dow Jones futures traded with a loss of 1,250 points clearly indicating sharp fall in opening later today.
The price war initiated by Saudi Arabia after the OPEC failed to agree on production cuts with its allies indicates that the coronavirus situation could be much worse than previously anticipated.
"The sharp decline in the global oil prices not only reflects the deep underlying concerns on a global economic disruption brought about by the Corona Virus scare but also a lack of consensus among the OPEC nations regarding production cuts," Suman Chowdhury, President – Ratings at Acuité Ratings & Research said.
The fall in oil prices due to lower demand helps India as it imports 80-85 percent of its requirement, and will also play a supportive role for Indian equities as the raw material cost will decline significantly.
"This will benefit India since it is one of the largest importers of crude oil; we estimate the savings on oil imports to be around $30 billion in FY21 if there is no significant uptick in global demand. This will also arrest the rising inflation and facilitate the next round of rate cuts by RBI," Chowdhury said.
Novel coronavirus has already taken lives of more than 3,600 people since January with 1.07 lakh infected cases. The cases have gradually been declining in China, the origin of the virus, but it has been increasing elsewhere which created more ruckus in global markets.