Mumbai: The Bombay Stock Market sensitive index (Sensex) recorded its biggest intra-day fall of 2,251 points, 200 points above yesterday's intra-day fall of 2,049.74 points as share markets across the world saw a second day of bear hammering. (See: Worst fall in Indian trading history)

The Sensex closed at 16,729.94 points, down 875.41 points, or 4.97 per cent, from yesterday's close of 17,605.35.

The recovery was remarkable since the index had plummeted 2,251.46 points, or 12.79 per cent, to 15,353.89 points at noon, in a day of highly volatile trading.

This was also its biggest intraday fall since May 2004. The Sensex has shed 27.2 per cent from a record high hit on January 10.

The 50-share National Stock Exchange (NSE) index Nifty closed 309 points or 4.45 per cent down at 4,977.10, having fallen as much as 14.6 per cent.

Trading was halted for nearly an hour after the Sensex fell over 2,000 points within seconds of the markets' opening as panic-stricken trades dumped stocks.

Panic selling had set off circuit breakers at 9:56 am in the morning which automatically halted trade for an hour.

Shares of ONGC, ITC, Hindalco, Mahindra & Mahindra, and Ambuja Cement were the biggest losers, while Bharti Tele and Tata Motors managed to close in the green.

Stocks also tumbled across Asian markets on fears that a US recession could derail global growth, sending investors fleeing to safe-haven government bonds.

The market also seems to have factored in Reserve Bank governor Y V Reddy's statement in Mumbai yesterday that global financial markets have become far more uncertain than before and RBI will consider a possible recession in the world`s biggest economy while reviewing its monetary policy next week.

The government cautioned investors against market rumours, while blaming global uncertainties for the fall.

Finance minister P Chidambaram's advice to the investors to stay calm and invested also seems to have some effect. He said the country's economic fundamentals remain strong.

(Also See: Markets show recovery; Sensex up 1600 points and Stock markets slide; Sensex down 9.5 per cent; Nifty down 11 per cent)