The BSE Sensex and Nifty are down around 1.5 percent, heading towards their biggest single day fall since October 8, 2012.

Domestic shares extend fall, tracking weak regional stocks on market talk of a hedge fund liquidating big global positions in commodities and worries that the U.S. Federal Reserve could wind down its bond-buying programme.

ICICI Bank (ICBK.NS) shares fall 3.6 percent and State Bank of India falls 1.6 percent after RBI data showed that loan growth continues to remain a concern.

Reliance Industries (RELI.NS) shares fall nearly 1.6 percent, retreating after a 3.1 percent surge on Wednesday.

ABB (ABB.NS) shares fall 3.7 percent after the company reported a 74 percent fall in Oct-Dec net profit at 167.7 million rupees.