The finance ministry on Tuesday attributed the fall is domestic equities to turmoil in global economy and said the government is taking measures to address the challenges.
"Global economy is in turmoil, markets are down. We know the challenges and are taking necessary measures," Economic Affairs Secretary Shaktikanta Das tweeted.
Equities have remained depressed on persistent global headwinds.
Market benchmark Sensex on Tuesday witnessed selling pressures and declined by over 230 points to 23,787.
In addition, weakness in the rupee against the American currency too weighed on the sentiment.
The rupee was lower by 8 paise at 67.98 against dollar in late morning trade.