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The S&P BSE Sensex plunged as much as 276 points in morning trade on Wednesday, led by losses in ICICI Bank, RIL, HDFC Bank, Infosys and SBI.The Nifty50 slipped below its crucial psychological level of 7,400 in trade weighed down by losses in realty, power, oil & gas, capital goods, and banking stocks. 

India's broader NSE index was trading down 0.2 percent in a volatile session on Tuesday, but bank stocks rose on bargain hunting in the beaten-down sector after the central bank left key rates unchanged, as widely expected.

The Reserve Bank of India kept its policy rate on hold at 6.75 percent, opting to wait until after the government's annual budget statement end-February to decide on whether to cut interest rates further.