The Sensex is now down 270 points at 9,036.
DLF and ICICI Bank have slumped around 6% each to Rs 146 and Rs 385, respectively.
Mahindra & Mahindra and Tata Steel have plunged around 5.5% each to Rs 297 and Rs 174, respectively.
Hindalco has shed 5% at Rs 42. HDFC Bank, Reliance Communications and Maruti have tumbled around 4% each to Rs 876, Rs 164 and Rs 597, respectively.
Reliance Infrastructure, Tata Power and Reliance have dropped 3.7% each to Rs 513, Rs 747 and Rs 1,270, respectively.
Infosys, Wipro and TCS have slipped around 3.5% each to Rs 1,178, Rs 208 and Rs 484, respectively.
Jaiprakash Associates and HDFC are down around 3% each at Rs 67 and Rs 1,453, respectively.
The market breadth is very negative - out of 2,248 stocks traded so far, 1,619 declined, 541 advanced and the rest were unchanged.