Sensex plunges 678 points, Nifty 50 closes below 17,700

Tech Mahindra was the top loser in the Sensex pack, shedding over 3 per cent, followed by NTPC, IndusInd Bank, Kotak Bank and Reliance Industries. On the other hand, UltraTech Cement, Tata Steel, Maruti, Titan and Dr Reddy's were among the gainers, according to reports.

Elsewhere in Asia, bourses in Shanghai and Tokyo ended with gains, while Hong Kong and Seoul were in the red. Stock exchanges in Europe were trading with losses in mid-session deals. Meanwhile, international oil benchmark Brent crude advanced 0.23 per cent to USD 83.85 per barrel.

Markets traded under pressure for the second consecutive session and lost nearly a percent, in continuation to the prevailing corrective phase. After the sharp decline in early trades, the benchmark recovered almost vertically in no time but selling pressure at the higher levels again pushed the bulls on the back foot. Finally, the Nifty ended down by 1% at 17,672 levels. A mixed trend was witnessed on the sectoral front wherein IT and banking were the top losers, Ajit Mishra, VP – Research, Religare Broking Ltd said.

Earnings disappointment combined with feeble global cues is weighing on the sentiment. Apart from the earnings announcements, participants will be closely eyeing the upcoming US Fed meet and auto sales numbers for cues. Indications are pointing towards further slides so participants should maintain a cautious approach and prefer a hedged approach, Ajit Mishra stated.