Consequently, the total market capitalisation of all the BSE-listed companies dipped by Rs 1,84,086 lakh crore to Rs 90,64,734 crore, putting pressure on the rupee that again breached the 68-mark against the dollar.

On the other hand, gold glittered to trade at more than two-month high of Rs 26,690 per 10 grammes.

"Expectations of the market going downhill are likely to strengthen as the double whammy impact of oversupply in crude and the concerns in Chinese economy will dampen the investors' preference towards equities," said Vinod Nair Head-Fundamental Research of Geojit BNP Paribas Financial Services.

The benchmark Sensex ended 1.71 percent down at 24,062.04 as nervous investors sold off shares across all sectors, including realty, metal, PSU, power, banking and oil and gas.

In the currency market, rupee breached the 68-mark for the first time in September 4, 2013. It partially recovered to end at Rs 67.95.

In a quarterly update to its World Economic Outlook, IMF had yesterday said the global economy will expand by 3.4 percent in 2016, down from an earlier estimated 3.6 percent in October.

In Asia, Shanghai crashed over 1 percent, Japan's Nikkei fell 3.71 percent, while Hong Kong's Hang Seng index plunged 1.82 percent. European markets too were not different and slid to a 13-month on investor concern about global growth.

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