The Sensex opened 92 points lower at 9,213, and has since extended losses and is now down 206 points at 9,100.
DLF has slumped over 6% to Rs 146. Mahindra & Mahindra has tumbled 5.7% to Rs 297.
Tata Steel has plunged 4% to Rs 177, and ICICI Bank has plunged 3.7% to Rs 394.
Maruti and Reliance Infrastructure have dropped around 3.5% each to Rs 599 and Rs 516, respectively.
Grasim, Hindalco and HDFC Bank have slipped around 3% each to Rs 1,307, Rs 43 and Rs 887, respectively.
SBI and HDFC have declined nearly 3% each to Rs 1,455 and Rs 1,104, respectively.
Reliance Communications, ACC, ONGC, Reliance, TCS, Sterlite, Jaiprakash Associates, Wipro, Bharti Airtel and BHEL are the other prominent losers.
Ranbaxy, however, has gained 1.5% at Rs 208.