The Sensex tumbled to a low of 12,403, but has now recovered marginally and is down 479 points at 12,623.
Jaiprakash Associates has slumped 11.7% to Rs 107, and ICICI Bank has plunged over 11% to Rs 498.
DLF has tumbled 8.5% to Rs 338. Satyam has dropped over 7% to Rs 298.
Tata Power, TCS and Ranbaxy have dropped around 6% each to Rs 925, Rs 636 and Rs 257, respectively.
Tata Motors, Reliance Infrastructure and Bharti Airtel have shed around 5% each to Rs 354, Rs 806 and Rs 737, respectively.
BHEL and Reliance Communications have slipped 4% each to Rs 1,489 and Rs 333, respectively.
Out of 2,610 stocks traded so far, 2,322 have declined, 252 have advanced and 36 are unchanged.