Taking cues from global markets, the Sensex nosedived 1,006.54 points, or 3.67 per cent, to 26,359.53- the biggest fall in day trade in 2015. Weak Chinese manufacturing data deepened worries about the slowdown in the world’s number two economy. The broader 50-share CNX Nifty was quoted at 8,045.95, down 254 points, or 3.1 percent.

In a stock market bloodbath, benchmark Sensex today crashed over 1,400 points – biggest in over seven years – amid a global rout, while more than Rs 3 lakh crore got wiped out of the investors’ wealth.

Declines were seen across all sectors with the NSE’s Bank sub-index down 4.93 percent.

Chinese markets, too, came under severe pounding with the Shanghai composite index tumbling 8 percent to 3,228.57 in early trading and Hong Kong’s Hang Seng index falling 4.2 percent to 21,475.15.

Crucial standard indices in Asia, Singapore Korea were down to 4.60 percent. Australia slid 2.5 percent to 5,084.30 and South Korea’s Kospi lost 0.5 percent. “However, the economic parameters would remain relatively stronger for India”, Deven Choksey, managing director at KR Choksey Securities said.

The potential threat of financial contagion effects on mounting concerns over the Chinese economy and global growth meltdown fears took its toll on the Indian market as well, triggering widespread panic sell-off and pulled down the flagship sensex sharply by over 700 points to close below the key psychologically significant 28,000 barrier. Oil prices have fallen after slipping below $40 a barrel for the first time in six years.

On the macro front, India’s exports narrowed for the eighth straight month by 10.3 per cent in July to United States dollars 23.13 billion, widening the trade deficit to USD 12.81 billion.