"Investors grew wary of renewed trade war fears between the US and China, and adopted a note of caution", said Karthikraj Lakshmanan, senior fund manager-Equities, BNP Paribas Mutual Fund, while adding that Indian indices mirrored the overall global fall.
On a session-wise basis, the BSE Sensex at 3.30 p.m. closed lower by 351.56 points or 1.05 per cent to 33,019.07 points from its previous session's close.
Earlier, the Trump administration proposed 25 percent tariffs on $50 billion worth of imports from China to protest Beijing's alleged theft of USA technology.
The biggest Sensex loser, however, was Tata Steel that declined 3.2 per cent. Shares of other metal firms, too, fell given high dependence on global trade. Tata Steel was the worst performer in the index as it fell 3.29 per cent, followed by Axis Bank at 2.61 per cent.
Mishra Dhatu Nigam shares ended flat on the first day of listing while shares of ICICI Securities closed at Rs. 441.50 on the NSE on debut, down 15 percent from its issue price of Rs 520 a share.
NASA chooses Lockheed Martin to build and test supersonic aircraft
The jet will be propelled by a single General Electric F414 engine, the powerplant used by F/A-18E/F fighters, according to NASA . The following year NASA officials said they will fly the X-plane over US cities and collect community responses to the noise.
"The market witnessed a complete nosedive in the late afternoon after some fresh worries arising on the global trade war".
In the broader market, the BSE Midcap and the BSE Smallcap indices gained 0.4 per cent and 0.5 per cent, respectively.
Besides, investors remained cautious ahead of the outcome of the central bank's first bi-monthly monetary policy of 2018-19 on Thursday.
On Tuesday, despite volatility in the global markets, the Sensex and Nifty closed Tuesday's rangebound trade session with appreciable gains led by healthy buying in banking, auto, oil and gas, and healthcare stocks. However, Japan's Nikkei bucked the trend as it rose 0.13 per cent. 150 stocks were unchanged. The index began trading in the green in the early part of Wednesday's session but after China announced a tit-for-tat measure against the USA, the sensex lost almost 400 points in a little over an hour and closed near the day's low of 32,973. The S&P 500 lost 8.86 points, or 0.34 per cent, to 2,605.59 and the Nasdaq Composite dropped 6.37 points, or 0.09 percent, to 6,934.92.