The BSE Sensex settled the day 29,461.45, plunging 182.03 points while the NSE Nifty closed the day 52.65 points lower at 9,150.
Dragging the markets down were TCS (down 2.60 per cent), Adani Ports (down 2.61 per cent), Tata Steel (down 3.07 per cent) and Infosys (down 3.60 per cent).
Shares of Sun Pharma was the top gainer on BSE, adding 1.71 per cent.
The rupee made good some of its losses by strengthening 30 paise to 64.37 against the US dollar in early trade today on fresh selling of the American currency by banks and exporters.
Besides, weakness of the dollar against other currencies overseas supported the rupee, forex dealers said.
They said a lower opening of the domestic equity market and weak macroeconomic data with retail inflation jumping to 5-month high of 3.81 per cent in March and industrial output contracting 1.2 per cent in February capped the rupee's gain.
Yesterday, the rupee had ended lower by 17 paise to 64.67 against the US dollar with forex market sentiment taking a hit over growing geopolitical tensions at the global level.
The markets are under pressure in trade today with stress from the IT sector and fall in the metals space.
Infosys is currently the top loser on the BSE Sensex, losing over 2 per cent.
Vedanta, down 3 per cent and Hind Zinc, down 0.80 per cent.
The Indian benchmark indices opened on a negative note on the back of weak global cues.
The S&P BSE Sensex was trading at 29,577.55, 65.93 points lower.
The NSE Nifty Index was trading at 9,183.90, down 19.55 points.
Country's largest IT software giant Infosys announced their Q4 results prior to market opening with weak results.
The stock of Infosys fell over 2 per cent in early market session.
Among other laggards were Tata Steel and Adani Ports that fell 1.13 per cent and 2.15 per cent respectively.
Hindalco was the top loser on the NSE with Reliance pushing up gains adding nearly 1 per cent.
HIGHLIGHTS OF INFOSYS Q4 RESULTS
Infosys January-March FY17 consolidated net profit rises marginally year-on-year to Rs 3,603 cr; revenue up 3.44% to Rs 17,120 crore.
Infosys 2016-17 consolidated profit rises 6.4% to Rs 14,353 crore from previous fiscal; revenue up 9.7% to Rs 68,484 crore.
Infosys expects 2017-18 revenue growth at 6.5-8.5% in constant currency, 6.1-8.1% in US dollar terms.
FY18 constant currency guidance at Rs 17,120.
FY18 EBIT margin guidance between 23-25 per cent.
Constant EBIT margin falls at 24.6 per cent.
The board announced dividend of Rs 14.75 per share.
The company will also pay up Rs 13,000 cr as dividend/share buyback - 20 per cent net worth of Infosys.
Investors and experts remain cautious over the Infosys Q4 results as the giant is expected to take a conservative stance.