The crash happened amid selling in Utilities, Oil and Gas, and Capital Goods stocks, and heavy foreign outflows.
The National Stock Exchange (NSE) dropped 218.60 pts at 24,180.80.
The market opened on a positive note earlier in the day with opening at 80,187.35,, up by 122 points.
It soon surged to touch 80,253.19, a days high.
However, the momentum declined later by 928 pts to touch 79,137.98, a day low, before closing at 79,402.29, down 662.87 pts from its previous close.