In the Asian market, Hong Kong's Hang Seng fell while the Shanghai Composite Index plunged 1.30 per cent. Photograph: (Reuters)
The BSE Sensex lost 336 points in early trade and the NSE Nifty slipped below the 9,800-mark following global sell-off triggered by tensions between the US and North Korea.
The markets were also cautious ahead of the IIP data for June which is set to be released later today.
The BSE 30-share barometer dipped 336.46 points, or 1.06 per cent, to 31,194.87 with infrastructure, capital goods, realty, auto, metal and healthcare all in the red.
Tata Motors, L&T, Sun Pharma, Cipla, ONGC, Dr Reddy's, Asian Paint, Hero MotoCorp, ICICI Bank, Tata Steel, Coal India and Maruti Suzuk declined sharply in early trade.
In the Asian market, Hong Kong's Hang Seng too fell while the Shanghai Composite Index plunged 1.30 per cent.
Earlier, Wall Street closed sharply lower after as US President Donald Trump issued a new warning to North Korea. The S&P 500 index had its biggest one-day drop in almost three months.
The Dow Jones Industrial Average closed down 204.69 points, or 0.93 per cent, at 21,844.01, the S&P 500 lost 35.81 points, or 1.45 per cent, to end the session at 2,438.21 and the Nasdaq Composite fell 135.46 points, or 2.13 per cent, to 6,216.87.
Australian shares were down 1.3 per cent, set for a weekly loss of 0.5 per cent. South Korea's KOSPI fell 1.8 per cent to a 9 1/2-week low, taking its losses this week to nearly 2.7 per cent.
The Korean won also continued to skid, sliding 0.4 per cent to 1,146.2, below its 200-day moving average.