Other jittery factor for investor is the release of crucial industrial production and inflation data. The data's will give cues on the Reserve Bank's ability to cut lending rates in its next monetary policy review scheduled on June 2.

In Tuesday's trade all 12 sector-based indices ended the trade in the red. The S&P BSE banking, capital goods, automobile, metal, oil and gas, information technology (IT), consumer durables, healthcare, technology, entertainment and media (TECK) and fast moving consumer goods (FMCG) indices came under heavy selling pressure.

The S&P BSE Bank index plunged by 644.42 points, followed by capital goods index which drowned by 508.65 points, automobile index receded by 344.41 points, metal index plummet by 302.77 points and oil and gas index decreased by 239.64 points.

The S&P BSE IT index declined by 191.23 points, consumer durables index edged lower by 152.51 points, healthcare index lost 115.77 points, TECK index fell by 110.08 points and FMCG index was down 89.61 points.

The major Sensex gainers on Tuesday were: Dr.Reddy's Lab, up 3.31 percent at 3,473.50 and Hero MotoCorp, up 3.18 percent at 2,459.90.

The losers were: Tata Steel, down 6.29 percent at 353.15; BHEL, down 5.07 percent at 222.65; Vedanta, down 4.98 percent at 218.40; ICICI Bank, down 4.59 percent at 308.55 and Tata Power, down 3.64 percent at 71.50.

Among the Asian markets, Japan's Nikkei was higher by 0.02 percent, while China's Shanghai Composite Index gained by 1.58 percent and Hong Kong's Hang Seng moved down by 1.12 percent.

In Europe, London's FTSE 100 was down by 1.71 percent. However, France's CAC 40 was lower by 1.68 percent and Germany's DAX Index lost 2.04 percent at the closing in the Indian markets.