The Sensex slipped to a low of 9,013 - down 328 points from the day's high - and is now down 100 points at 9,130.
Earlier in the day, the index opened 25 points lower at 9,205, slipped into red and then rebounded and touched a high of 9,341.
Infosys has slumped over 4% to Rs 1,145. TCS has plunged 3.7% to Rs 529.
Jaiprakash Associates and Hindalco have shed nearly 3% each at Rs 69 and Rs 51, respectively.
NTPC has slipped nearly 2% to Rs 161. HDFC and Hindustan Unilever have declined 1.7% each to Rs 1,483 and Rs 233, respectively.
Tata Motors has rallied 4.5% to Rs 158. Reliance Communications has surged nearly 4% to Rs 205.
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Grasim has gained 3.3% at Rs 960, and ACC is up over 2% at Rs 438.
The market breadth is marginally positive - out of 1,998 stocks traded so far, 1,047 have advanced, 880 have declined and the rest are unchanged.