The Sensex extended losses and touched a low of 16,451. The index is now down 241 points at 16,498.
The Nifty is down 82 points at 4,888.
DLF has slumped 5.6% to Rs 406. ICICI Bank has tumbled 5% to Rs 845.
Sterlite and SBI have dropped 4% each to Rs 785 and Rs 2,208, respectively.
Hindalco, Bharti Airtel, Jaiprakash Associates, Reliance Communications, Reliance Infrastructure and Tata Power have shed 3-4% each.
The other major losers include Tata Steel, ITC, Reliance and HDFC.
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However, Wipro has surged 3% to Rs 608. Tata Motors and Sun Pharma have gained 1.5% each.
The market breadth is extremely negative. Out of 2,511 stocks traded 2,065 have declined while 391 have advanced.