Mumbai, Sep 3 (IANS): Indian rupee and stock markets plunged Tuesday, with bechmark Sensex sliding by 650 points on reports that missiles were fired at Syria, raising fears of disruption in oil supply and spike in prices.

The Indian rupee slipped below 68 against a dollar, losing more than two percent of its value in the day trade.

The 30-scrip S&P Sensex of the Bombay Stock Exchange (BSE) tanked 651.47 points or 3.45 percent at 18,234.66 points.

The Sensex hit a low of 18,166.17 points in the intra-day.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange (NSE) also slumped 3.77 percent at 5,341.45 points.

Banking, realty and oil and gas stocks slumped after the Russian defence ministry announced that it has detected launch of two ballistic missiles from the central part of the Mediterranean Sea toward the eastern part of the Mediterranean coast.

This led to huge sell-off in the Indian equities markets on fears that instability in the Middle East region would lead to a spike in crude oil prices that would worsen the country's economic situation already reeling under a record high current account deficit, low industrial output and persistent inflationary pressure.