The benchmark index of the Bombay Stock Exchange (BSE), Sensex plummeted 3,935 points or 13.15 per cent to reach at a lower level of 25,981.
The broader benchmark index of the National Stock Exchange (NSE), Nifty 50 index lost 1,162 points or 13.28 per cent at the day's lowest level to 7610.
The lockdown across the country led to panic selling, which wiped out Rs 14.22 lakh crore of investors' wealth from BSE-listed companies.
In the morning hours, the trading in stocks was halted as the main indexes plunged 10 per cent and resumed 45 minutes later. This was the market's second halt this month as the spread of coronavirus continues to disrupt businesses.
At one stage, the Sensex crashed as much as 4,035 points but regained later. The selling of foreign investors led to the bloodbath in the market. The foreign investors till last Friday sold shares worth Rs 49,506 crore.
Selloff was visible across sectors with the banking and financial services shares worst hit.
All the 11 sectoral indices fell led by the Nifty Private Bank index's 17.4 per cent drop. Nifty Bank, Financial Services, Auto, Metal and PSU Bank indexes also fell 11-16 per cent.
Bajaj Finserv, IndusInd Bank, Bajaj Finance, Zee Entertainment, Maruti Suzuki, Grasim Industries, JSW Steel, Larsen & Toubro and Vedanta also fell between 16-27 per cent each.
Top losers were Axis Bank down by 27.91 percent to Rs.308.65, Bajaj Finserv down by 25.86 percent to Rs.4,621, IndusInd Bankslips by 23.59 percent to Rs.336.45, Bajaj Finance falls by by 23.23 percent to Rs.2,266.15 and Adani Ports shed 18.95 percent to Rs.207.80.