Insight Bureau: Sensex fell 866.65 points, or 1.56%, to end the day at 54,835.58, and Nifty was down 271.40 points at 16,411.30.
Among sectors, IT, metal, and realty indices fell 2-3%. BSE midcap and smallcap indices fell 2% each.
Globally, stocks slid as risk aversion and volatility gripped markets beset by inflation and growth fears.