After opening 2,718 points lower, the BSE barometer plunged 2,991.85 points, or 10 percent, to 26,924.11.
As an automatic mechanism to freefall in the market, when an exchange plunges 10 percent before 1 pm, trading is halted on stock exchanges for 45 minutes.
All Sensex components were trading in the red, with Axis Bank tanking up to 20 percent, followed by ICICI Bank, IndusInd Bank, Bajaj Finance, Hero MotoCorp, and M&M.
Bourses in Shanghai, Hong Kong and Seoul plunged up to 4 percent, while Tokyo was trading with gains.
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