Mumbai: BSE benchmark Sensex plunged over 265 points to crack below the 28,000-mark in early trade on Wednesday as investors indulged in trimming their bets after the minutes of the US Federal Reserve's September meeting indicated a possible rate hike this year.
Besides, the trading sentiment was influenced by a weak trend in Asian markets after China's exports unexpectedly declined.
Also, the broader NSE Nifty slumped below the 8,700-mark.
The 30-share barometer plunged by 265.21 points or 0.94 percent to 27,817.13.
The index had risen by 21.20 points in the previous session on Monday. Stock Exchanges remained closed on Tuesday and Wednesday on account of "Dussehra" and "Moharum", respectively.
Industrial output remained in the negative for the second month in a row, contracting by 0.7 percent in August due to slump in manufacturing, mining and capital goods segments.
Sectoral indices led by realty, baking, auto and metal were trading in the negative zone, falling by up to 1 percent.
Also, the NSE Nifty was trading 82.20 points or 0.94 percent lower at 8,626.60.
Brokers said apart from weak Asian cues after China's exports unexpectedly declined, investors also weighed minutes of the Federal Reserve's last meeting that show the US central bank may go for a rate hike this year.
Among Asian markets, Japan's Nikkei fell 0.39 percent, While Hong Kong's Hang Seng down 1.33 percent in early trade today.
The Dow Jones Industrial Average ended 0.09 percent higher in yesterday's trade