Closing Bell: Sensex sheds 470 points, Nifty falls 1.2% as market witness huge selling; Yes Bank tanks 1%, Zee down 8%

In broader markets, the Nifty Midcap and the Nifty Smallcap indices fell 1.7 and 1.5 percent, respectively.

Tata Motors, UPL, HDFC Bank, Coal India and Bharti Airtel were the top gainers on the Nifty50. Yes Bank was the biggest loser on the index, down nearly 16 percent followed by Zee, Indiabulls Housing, Tata Steel and IndusInd Bank.

All sectoral indices ended in red for the day. The Nifty Media index fell the most, down 4.5 percent each followed by the Nifty PSU Bank, down 2 percent. Meanwhile, the Nifty Bank, the Nifty Energy and the Nifty Realty slipped over 1.5 percent each. The Nifty Auto also slipped 1.2 percent, while the Nifty Pharma slumped 1.7 percent for the day.

Zee slumped 8 percent after sources told CNBC-TV18 that Zee promoters met mutual fund lenders for an extension of the September 30 deadline for the repayment of debt.

IIFL Wealth Management, the demerged entity of IIFL Holding, made its debut on Indian bourses on Thursday. The stock, which listed at 1,210 per share on NSE, ended in 5 percent upper circuit at Rs 1,270.50.

Auto stocks were under pressure as waning hopes of tax cuts to spur demand hit automakers. According to sources, the GST Council's Fitment Committee has rejected the proposal to cut GST for the auto sector.