BSE Sensex and NSE Nifty slipped more than 1.5%

The BSE Sensex and NSE Nifty slipped more than 1.5% due to fall in global markets. European markets opened lower after elections in Greece and France saw incumbents defeated, raising fears the collective response to the euro zone debt crisis seen as crucial to holding the currency bloc together is fracturing.

France's CAC and Spain's IBEX lost 1.8% each in early trade.

Germany's DAX was down 2.2% while US stock futures too were down 1%.

"There are great fears that the new government in Greece will end austerity measures and that will lead to a disorderly default, and that has led to a sell-off across all risk markets," said Ben Le Brun, a market analyst with OptionsXpress in Sydney.

Back home, the BSE benchmark fell 308.17 points or 1.83% to 16522.91 and the NSE benchmark was down 94.60 points to 4,992.25. Even the broader markets were under pressure - the BSE Midcap Index was down 1.85% and Smallcap down 1.4%.

Country's second largest private sector lender HDFC Bank crashed 3.5% while rival ICICI Bank was down 2.8%. Public sector lender State Bank of India tanked 3.8%.

Oil & gas producer Reliance Industries, software services exporter Infosys and engineering & construction company Larsen & Toubro were down 2% each.

FMCG majors (called defensive sector) ITC and HUL declined 1.5-2%.

The BSE Realty, Bank, Metal, FMCG, IT and Oil & Gas indices were down 1.5-3%.

Shares of Jaiprakash Associates and Cairn India retained their top positions in the selling list, losing over 5%.