An evening walk down Dalal Street on October 4, 2018

Bears further tightened their grip on Dalal Street as the Sensex plunged more than 800 points to close at four-month low on Thursday. Crude oil prices touched fresh four-year high and rupee hit record low raised fears of a broadening current account deficit.

In addition, the government asked oil marketing companies to absorb Re 1 per litre on petrol and diesel also dented investors sentiment. Traders also remained cautious ahead of three-day Monetary Policy Committee's rate decision due on Friday.

The fall in global markets on hawkish comments from the US central bank, too, caused selling pressure.

The 30-share BSE Sensex tanked 806.47 points or 2.24 percent to 35,169.16 and the 50-share NSE Nifty closed tad below 10,600 levels, falling 259 points or 2.39 percent to 10,599.30.