Sentiments also took a hit on sell-off in NBFCs, led by Indiabulls Housing Finance, Dewan Housing Finance, IL&FS Engineering and Construction which dropped up to 16.55 per cent on prevailing liquidity concerns, brokers said.

While the Sensex fell 470 points or 1.37% lower at 34,301 level, the Nifty shed 127.70 points or 1.22% to 10,325. Top Sensex losers were Reliance Industries (5.10%), Infosys (2.95%)  and YES Bank (2.27%).

Sameet Chavan, Chief Analyst, Technicals and Derivatives at Angel Broking, takes viewers through all  the market action today. Surrendering early gains, the benchmark Sensex on Wednesday fell 383 points to end below the 35,000-mark in highly volatile trade, breaking three sessions of gains as NBFC stocks tanked on fears investors will not roll over their positions in commercial papers issued by them.

The firm reported a 10.3 per cent growth in its consolidated net profit at Rs 4,110 crore for the quarter ended September 2018.

The Sensex swung nearly 880 points both ways on alternate bouts of buying and selling during the session. It finally ended 1.09% lower at 34,779 points. The Nifty too ended 131 points or 1.24% lower at 10,453.

A litany of factors, from rising crude oil prices to the record-low rupee, the liquidity crunch post IL&FS loan default, and the Sino-US trade war led to a battering on Dalal Street.

At the current level of 2,548 points, the Shanghai Composite Index is down more than 50% from 5,166 level, it attained in 2015. The index has lost 22.93% since the beginning of this year and fallen 24.41% during the last one year.

Sneha Seth, Analyst, Derivative Research, takes viewers through all the market action today. The Sensex and Nifty extended gains for the third straight session today on strengthening of rupee and healthy start to the corporate earnings season. While the Sensex closed 297 points higher at 35,162, the Nifty gained 72.25 points or 0.69% to 10,584 level.

Top Sensex gainers were M&M (3.97%), Adani Ports (3.54%) and ONGC (3.44%).  HDFC Bank (0.77%), Bajaj  Auto (0.54%)  and Maruti (0.48%) were the top Sensex losers.

With two and a half months still remaining in the current calendar year, the net FII withdrawals could well cross the psychological mark of Rs 1 lakh crore.

However, sometimes share prices can move very swiftly in any direction. Such movement can be because of panic in market, news or simply manipulation of prices. A circuit breaker is a system which ensures that any such swift movement in any direction is based on logic rather than anxiety/panic.