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After gyrating 626 points, the 30-share BSE Sensex ended 470.41 points, or 1.29 per cent, lower at 36,093.47.
India's Ambassador to the US Harsh Vardhan Shringla said India-based global IT services companies employ more than 175,000 workers in the US accounting for 8.4 per cent of employment in the computer systems design and related services industry.
The broader NSE Nifty was down 0.72% at 11,475.05 as of 0500 GMT, while the benchmark BSE Sensex was trading 0.59% lower at 38,483.71.
The 30-share Sensex tanked 907 points in the intra-day trade before settling at 38,720.57 points, showing a sharp loss of 792.82 points or 2.01 per cent.
Chennai is one of 21 cities that a government think-tank warned last year could run out of groundwater by 2020. This year's monsoon is delayed, further compounding problems across a swath of western and central India.
India is the largest recipient of these temporary visas, most of them to workers at big Indian technology firms.
Prime Minister Modi led Bharatiya Janata Party (BJP) to a thumping victory for the second term in office, winning an absolute majority and on course to touch the 300-seat mark in the 543-member Lok Sabha.
The benchmark BSE Sensex erased early gains to end 299 points lower Thursday as investors booked profits after stocks soared to record highs after BJP's strong showing in the Lok Sabha polls.
Arantxa was in Bengaluru as the ambassador of the upcoming TCS World 10K international marathon.
China has said it will retaliate if US raises tariffs on Chinese products.