Sensex fell 777.94 points (1.04%) to close at 74,003.82, a three-month low, after briefly dipping below 74,000.
Nifty ended down 279.50 points (1.19%) at 23,118.60, its lowest level since early April, marking the worst session in weeks.
Metal and realty stocks led the sell-off, with Hindalco down over 3% and JSW Steel sliding nearly 3%, while IT stocks like HCL Tech (+3.98%) and Infosys (+3.64%) bucked the trend.