Stocks, led by realty shares, fell for the seventh consecutive day on Thursday.
Sensex plunged by 322.77 points or 3.68% to close at 8,451.01.
Indian markets are also likely to open with a downward gap of more than 2%.
Nifty dropped by 48.15 points or 1.79 per cent to close at 2635.
National Stock Exchange index Nifty also lost 116.40 points at 2,683.15.
Nifty dropped by 10.80 points to close at 2799.55.
Traders holding short positions may continue to do so, with a stop loss of 2970.
Global trends are going to steer the market this week.
Volatility has returned to the November series after starting on a bullish note.
Country's most valued firm RIL alone suffered a loss of Rs 10,906 crore.
