Bloodbath at Dalal Street: The BSE S&P Sensex closed 1,115 points or 2.96 per cent lower at 36,554 while the Nifty 50 tumbled by 326 points or 2.93 per cent at 10,806.
The BSE Sensex tanked nearly 1,100 points in the afternoon trade after Fed officials suggested the US economy was worse than the market was pricing in.
Among stocks, metal major Hindalco cracked by 4.3 per cent to close at Rs 175.85 per share. ICICI Bank and Bajaj Finance dropped by 1.6 per cent each.
The development came a day after announcing that US technology investor Silver Lake will invest Rs 7,500 crore in Reliance Retail Ventures.
The BSE S&P Sensex closed 273 points or 0.71 per cent up at 38,901 while the Nifty 50 gained by 83 points or 0.73 per cent at 11,470.
Chinese blue chips firmed by 0.7 per cent after surveys showed Chinese services jumping a full point to 55.2 in a hopeful sign of reviving consumer demand.
Hero MotoCorp was up by 6.4 per cent to close at Rs 3,159.95 per share while Bajaj Auto gained by 2.2 per cent at Rs 3,076. TVS Motor ticked up by 4.8 per cent at Rs 467.55 per share.
Among stocks, Tata Motors accelerated by 5.3 per cent to Rs 127.65 per share while Eicher Motors and Mahindra & Mahindra gained by 2.2 per cent and 1.6 per cent respectively.
Kotak Mahindra Bank gained by 2.8 per cent, HDFC Bank by 2.2 per cent and ICICI Bank by 1.2 per cent. Grasim, Adani Ports, Asian Paints and Bharat Petroleum Corporation too traded with a positive bias.
Asian equities fell due to the US Federal Reserve's cautious view of the economy, tensions with China and new clusters of coronavirus infections.