Similarly, the wide-based National Stock Exchange index Nifty also broke the crucial 2600 points level by ending at 2584.00, showing a hefty loss of 359.15. It touched the day's low of 2525.05 points.

The lowering of economic growth projection by RBI to 7.5-8 per cent also eroded investors confidence. Finance Minister P Chidambaram, who has been advising stock market investors to take informed decision and not to resort to panic sales, said that RBI's decision not to disturb rates was in line with expectations.

RBI would add more liquidity as and when needed, he said.

Realty sector index suffered the most by losing 562.31 points, or 24.39 per cent to 1743.27, followed by oil and gas index by 906.64 points, or 14,97 per cent to 5151.64.