The BSE gauge Sensex tanked over 1,500 points to crack below the 57,000-mark and the NSE Nifty slipped below the 17,000-level in the opening session on Monday, amid heightened tension over the Russia-Ukraine conflict.
The 30-share Sensex nosedived 1,540.85 points to 56,612.07 in early deals and the broader Nifty plummeted 458.20 points to 16,916.55.
On the Sensex chart, all 30 shares were trading with steep to moderate losses -- with SBI, Tata Steel and IndusInd Bank tumbling over 4 per cent.
Elsewhere in Asia, bourses were trading in deep red, after concerns that Russia may soon invade Ukraine, which sent oil prices soaring.
Analysts said that domestic markets opened sharply lower in line with negative Asian markets as also sharply lower US equities.
Deepak Jasani, Head of Retail Research, HDFC Securities, said, "US stocks closed sharply lower on Friday as heightened concern that Russia may soon invade Ukraine sent oil prices spiking and investors to dump risky assets like equities."
Investors also weighed a sharp drop in consumer sentiment and a pickup in near-term inflation expectations, he added.
Global crude oil benchmark Brent Futures spiked over 1 per cent to USD 95.44 per barrel on Monday.
Foreign institutional investors (FIIs) were net buyers in the capital market on Friday, as they bought shares worth Rs 108.53 crore, according to stock exchange data.