"Markets slid as fears of escalating US-China trade war dented the confidence," said Vinod Nair, Head of Research, Geojit Financial Services.
The Indian rupee has depreciated 13 per cent so far in 2018 and touched a historic low of Rs 72.67 to a dollar Monday before a rebound.
"The persistent weakness in the Indian rupee is now starting to show its impact on all asset classes including the equities. The "sentiment risk" is now the major challenge for stock markets," said Jagannadham Thunuguntla, Sr VP and Head of Research (Wealth), Centrum Broking Ltd.
From the Sensex basket, 26 stocks ended with losses led by Sun Pharma, Mahindra & Mahindra, Vedanta and IndusInd Bank.
Among sectoral indices, the BSE auto fell the most by 1.75 per cent, followed by metal 1.74 per cent, energy 1.67 per cent and FMCG 1.65 per cent.
At BSE, 1,691 stocks declined, 1,041 advanced, while 195 remained unchanged.
Broader markets also faced selling pressure with the BSE mid-cap index falling 1.68 per cent and small-cap declining 1.07 per cent.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)