Benchmark Sensex today slipped from life highs to end sharply lower at 31,710.99 by falling 364 points following a steep plunge in ITC Ltd stocks after the GST Council yesterday hiked tax on cigarettes.
Besides, the broader Nifty also cracked below the 9,900- mark.
Sentiment was hurt after the GST Council raised the tax on cigarettes to take away an estimated Rs 5,000 crore annual "windfall" manufacturers could have reaped from lower GST rates.
The market was also pulled down by negative European and mixed Asian peers as setbacks for a health care overhaul in the US raised doubts over prospects for a range of reforms backed by President Donald Trump.
Shares of ITC Ltd emerged worst performer among the Sensex and Nifty components by crashing 12.63 per cent to Rs 284.60 on the BSE.
Other cigarette stocks, Godfrey Phillips and VST Industries, also tanked by up to 7.83 per cent.