Market closed on a weak note on Monday, hitting a 5-month low as global market sell-off triggered massive volatility.
Nifty Bank closed below the mark of 40,000 for the first time in 10 trading sessions.
All 12 stocks of the Nifty Bank index ended with losses, ranged from 1% to as high as 7%.
The Sensex fell 897 points to 58,238, and the Nifty shed 259 points to 17,154.
Rs 4 lakh crore worth of investor wealth was wiped out during Monday's trading session.
Silicon Valley Bank collapse leads to a sell-off in First Republic and Signature Bank stocks in pre-market.
Indian analysts don't expect a ripple effect on the domestic financial system from the SVB crisis to last long.
47 of 50 Nifty stocks close in the red with Infosys, RIL, ICICI and HDFC Bank biggest drags.
Market breadth firmly favours declines, advance-decline ratio at 1:5.
Volatility index surges more than 20%, its biggest single-day gain in a year.