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Mumbai: Investor panic over the country's lower than expected GDP growth figure of 5 per cent in the first quarter ending June, released last week, led the key market indices to decline by over 2 per cent on Tuesday.

Consequently, the India 'VIX', or the volatility index -- the market expectation of volatility over the near-term -- closed sharply higher. The VIX closed on Tuesday at 18.60, after it had surged nearly 12 per cent in a single session.

The benchmark Sensex closed 769.88 points, or 2.06 per cent, lower at 36,562.91.

It opened at 37,181.76, as against its Friday close of 37,332.79.

The broader Nifty closed 247.40 points, or 2.24 per cent, lower at 10,775.85.

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