The Sensex opened with a negative gap of 146 points at 9,902, and has since extended losses. The index is now down 277 points at 9,772.
ICICI Bank has slumped 5.7% to Rs 363, and Tata Steel has plunged 4.7% to Rs 213.
HDFC, Sterlite and Jaiprakash Associates have tumbled over 4% each to Rs 1,521, Rs 358 and Rs 86, respectively.
Reliance Infrastructure and Reliance Communications have also shed 4% each at Rs 545 and Rs 177, respectively.
Infosys, DLF and TCS have dropped 3.7% each to Rs 1,296, Rs 176 and Rs 554, respectively.
Grasim has slipped 3.3% to Rs 1,553. Hindalco has decline d3% to Rs 53.
SBI, Bharti Airtel, BHEL and HDFC Bank are the other major losers.
Sun Pharma, however, has gained 1.7% at Rs 1,098.