Indian markets fell sharply in late trade after trading flat in most part of the early session. Selling pressure was particularly strong in energy stocks amid a continued slide in global oil prices.
BSE Sensex was down 236 points to 27,348 while Nifty fell nearly 50 points to 8,273.
Sushil Choksey, director of Rosy Blue Securities, said Indian markets are likely to be volatile during earnings season. Index heavyweights such as Axis Bank, Reliance Industries, TCS and Wipro will report results for the quarter ending December 31, 2014 later this week.
The continued fall in oil prices is also weighing on traders' minds, Mr Choksey added.