File photo. Photograph:( Zee News Network )
At 2:42 pm, the BSE Sensex was trading with a loss of 587.76 point or 1.5 8 per cent at 36,535.55, while the broader index, the Nifty50 fell over 167 points to 10,836.20.
Sensex fell over 600 points shortly before the close on Tuesday. The latest dip follows the sharp rise in oil prices globally after the attack on Saudi crude oil facilities over the weekend.
At 2:42 pm, the BSE Sensex was trading with a loss of 587.76 points or 1.5 8 per cent at 36,535.55, while the broader index, the Nifty50 fell over 167 points to 10,836.20.
Investors in other Asian markets were also on the sidelines ahead of an expected interest rate cut from the US Federal Reserve on Wednesday.
Watch: Saudi Aramco oil attacks - impact on Indian economy
With the threat of military action over the attacks keeping crude prices elevated, emerging markets such as India - the world's third-biggest importer of oil - will remain under pressure.
India's current account and fiscal deficit could take a hit if oil prices continue to rise after the attack, central bank chief Shaktikanta Das said on Monday.
Oil marketers extended losses to a second day, with Indian Oil Corporation Ltd and Bharat Petroleum Corporation Ltd shedding 1.4%-2.1%.
Indiabulls Housing Finance Ltd slid 3.4% on a report that the central bank had intensified its checks on the mortgage lender and Lakshmi Vilas Bank, which plan to merge, after fresh accusations of wrongdoing and the sudden exit of the bank's chief executive officer. Lakshmi Vilas Bank shares fell 4.4%.
Trading companies MMTC Ltd and State Trading Corporation of India Ltd plunged between 17% and 18% after a newspaper reported that the government was planning to shut down the companies.
The Nifty IT index, which tracks software companies, fell 0.7%.
Meanwhile, miner Vedanta Ltd climbed 2.5% to its highest in nearly seven weeks, and was the top gainer on both indexes.
(With inputs from agencies)