Brent crude, used to price international oils, dropped 30 percent to $65.17 a barrel. Oil has now fallen for 12 straight days, driven by worries over rising oil production around the world and weakening demand from developing countries, with expectations for increased supply from the US and OPEC.

Tata Motors (4.84%), Hero MotoCorp (3.82%) and PowerGrid 2.87% were the top Sensex losers. Of 30 Sensex stocks, 25 closed lower.

The benchmark Sensex has gained 2,407.56 points, or 7 per cent, in the Hindu Samvat year 2074, while the broader NSE Nifty rose by 319.15 points, or over 3 per cent.

The Sensex fell below the 35,000-level to touch a low of 34,811.60 due to heavy selling pressure in view of foreign capital outflows and weak global cues.

With global crude prices remaining elevated, the rupee is likely to be under pressure, and may touch the 76 levels against the US currency over the next three months.

Bourses would remain closed on Wednesday and Thursday for 'Diwali Laxmi Pujan' and 'Diwali Balipratipada'. The BSE and NSE will conduct a special 'Muhurat' trading session on Wednesday.

India, due to a surge in oil prices and a falling rupee, is at the top of FPIs' selling radar.

Environment Pollution Control Authority has said that private cars will be stopped from plying in the capital if air pollution continues to worsen.

If India's democracy has to thrive and it aspires to create independent and autonomous institutions of the nature of the Federal Reserve, it needs to go the legislative route.

Seeing the value of investments going down is not a pleasant sight and many investors stand confused wondering whether the carnage will stop or not.