Benchmark Sensex lost another 188 points on Tuesday, due to the weak global sentiment triggered by the rapidly spreading corona virus.
After exceeding 463 points during the day, the 30-share BSE index fell 188.26 points, or 0.46%, to 40,966.86.
Likewise, the broader NSE Nifty closed 63.20 points, or 0.52%, at 12,055.80.
In the Sensex package, Bharti Airtel was the biggest loser, dropping 4.55%, followed by Tata Steel, Reliance Industries, Maruti, ITC, Nestle India and ICICI Bank.
On the other hand, HDFC, Bajaj Finance, Sun Pharma and HDFC Bank grew up to 1.53%.
Volatility remained high amid a global sell-off spurred by concerns about the effects of the Chinese corona virus on the global economy.
Market participants are also nervous when the derivatives expire this week in January, they added.
South Korea's kospi fell over 3% and Japan's Nikkei by 0.55%. The stock exchanges in Europe have also opened lukewarm.
Brent crude futures fell 0.77% to $ 58.13 a barrel.
On the currency side, the Indian rupee rose 12 pairs to $ 71.31 per intra-day.