On Monday, the BSE Sensex closed at 31,715.35, down 2,002.27 points or 5.94 per cent, while the 50-share index Nifty was at 9,293.50, down 566.40 points or 5.74 per cent.
Almost 28 out of 30 shares in the 30-stock index ended in the red.
In fact, the decline also eroded investors' wealth by around Rs 5.8 trillion, BSE data shows.
Markets had posted their biggest single-day decline since 23 March besides weak global cues and corporate results for the March quarter also affected the sharp fall, according to Livemint report.
Investor sentiments were hit after the US President Donald Trump threatened new tariffs against China in response to the Covid-19 pandemic.
Wall Street's major averages regained losses to close higher as the market rallied on the back of solid gains in shares of big technology companies.
On Monday, the Dow Jones Industrial Average increased 26.07 points, or 0.11 per cent, to 23,749.76. The S&P 500 rose 12.03 points, or 0.42 per cent, to 2,842.74. The Nasdaq Composite Index jumped 105.77 points, or 1.23 per cent, to 8,710.71, Xinhua news agency reported.
Asian shares also moved into positive zone with Australia’s S&P/ASX 200 Index gaining 1.4 per cent. Hong Kong’s Hang Seng Index gained 0.5 per cent and Singapore's SGX Nifty also rose 1.13 per cent.
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(With inputs from agency)