The S P BSE Sensex fell 581.21 points (1.00 per cent) to end at 57,276.94 while the broader Nifty 50 declined 167.80 points (0.97 per cent) to settle at 17,110.15. Both the indices had opened over 1 per cent lower and slipped nearly 2.5 per cent in the intraday trade with the Sensex hitting a low of 56,439.36 while the Nifty touched 16,866.75.

The Federal Reserve signaled that it is likely to raise US interest rates in March and reaffirmed plans to end its bond purchases that month before launching a significant reduction in its asset holdings.