Devastated

Sorry to hear about your experience Ankit. I agree with Mike about stress playing a significant role. Without knowing more about your studying patterns or style, here's a few general tips I would suggest:
When you are evaluating your performance, don't limit yourself to just your CAT scores or the percent correct. Try to break down the question by category, concept and difficulty to see where your real weaknesses are. Also, it is important to consider consistency in those. For example, if there is a high variance in your accuracy each time you do a set of practice questions, that can be a signal that you haven't quite gotten the concept yet.

As for next steps, here's what I recommend: the whole point of taking the GMAT is not to get a high score, it is to get in to business school. I suggest you demonstrate your ability to be persistent by trying again. Give yourself enough time to prep but not so much time that you burn yourself out. Maybe take a break for a few weeks (real break, not the kind of break where you come back constantly to check forums and stress about it as you sleep) and then hit the books hard. During the time you're hitting the books, I recommend allocating your time primarily on the areas where you are weakest but keeping an eye on maintaining your strengths. Remember - it shouldn't be a trade off. When I took it, I split my time 75% on weaknesses, 25% reviewing the concepts and doing a few simple and advanced problems in my strength areas.

When you bring it up during your business school interviews, highlight your ability to overcome the obstacle through persistence and your ability to improve.

Best of luck! If you PM me some verbal prep that you've already done, then I can point you to some additional resources.