Equity markets opened flat but immediately plunged into red for the 4th consecutive session, finally ending the session with heavy loss of ~2% - the biggest fall in seven months. Broader indices too mirrored the benchmark and closed almost 3% down. Except for metals, sell off was seen across the sector with majority of the sectors down 2-4%. Volatility index, India VIX skyrocketed - up 17.5% to 17.5 levels.

Cancellation of Reliance-Aramco deal, withdrawal of agriculture farm acts, persistent selling by FIIs and disappointment from Paytm's listing dented market sentiments and led to free fall in the market.

Biggest gainers in the 30-share index were Bharti Airtel (3.90%), Asian Paints (1.14%) and Power Grid Corporation of India (0.99%).

On the other hand, Bajaj Finance (5.74%), Bajaj Finserv (4.69%), Reliance Industries (4.42%), NTPC (3.73%), Titan (3.49%), State Bank of India (3.47%), Kotak Mahindra Bank (3.09%) and Maruti Suzuki (3.06%) were the biggest losers in the Sensex. Market breadth was negative with 906 advances against 2,498 declines.

Global cues were mixed as despite strong corporate earnings, the return of COVID-19 restrictions in Europe and concerns about an earlier than expected rate hike by the U.S. Federal Reserve amid high inflation put investors on guard. Oil was down to seven weeks low as Japan contemplated releasing supply from its reserves.

Commenting on the outlook, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said, "Overall market is likely to continue with its consolidation as valuations are rich while the global cues are keeping markets volatile - inflation concerns have dominated headlines and the Fed is starting the tapering programme soon. Investors would also be eyeing the Covid situation in Europe and its impact on the economic activities. Thus, in the near term, market may remain under pressure until fresh positive triggers appears and stock specific action is likely to continue.

Markets will take direction from macro data that is expected to be released during the week. The U.S. and the euro zone will release manufacturing and service data on Tuesday. Further data from the U.S., including the Fed minutes from its latest meeting, GDP and initial jobless claims, will be released on Wednesday ahead of Thursday's Thanksgiving holiday."