The markets extended their intra-day losses to fresh lows in the noon session, with no major domestic news to negate the effects of weak Asian and European peers. The Sensex, which dropped to the day's low of 18,036, off 290 points from the previous close, was quoting at 18,051 down 275 points. The Nifty slipped below the crucial 5,400-mark, and was at 5,398 off 89 points.
Major losers on the Sensex were led by Relaince Infra down 3% at Rs 550, while ICICI Bank at Rs 1,012 and Tata Motors at Rs 1,133 were off 3% each. ONGC, HDFC Bank and Tata Steel declined nearly 3% each.
FMCG major ITC was the only scrip trading in the green on the Sensex up nearly 2% at Rs 189.
The broader markets weakened further, with the Mid-cap index at 6,682 and the Small-cap index at 8,095 both down 1%.
All the sectoral indices, with the exception of the FMCG index at 3,770, were trading in negative terrain. Rate-sensitive sectors such as banking, auto and realty were beaten down more than 2% each, while the Metal index fell 2%.
The Bankex was at 11,850 down nearly 3%, while the Metal couter at 14,771 and the Realty index at 2,039 were both off 2% each.
In Asia, major indices were trading with considerable weakness; the Shanghai Composite shed 3% at 2,775, while Japan's Nikkei 225 slipped nearly 2% to 9,461, and the Hang Seng let off 2% at 22,756.
Even the European bourses opened on a dismal note, with France's CAC 40 off 1.4%, Germany's DAX down 1% and the UK's FTSE 100 off marginally.
With only 719 advances versus 1,771 declines, the market breadth, with a total of 2,579 stocks traded on the BSE so far, was negative.