The Sensex is now down 364 points at 9,021.
Reliance Infrastructure has slumped 10.8% to Rs 461. HDFC Bank and DLF have tumbled over 9% each to Rs 918 and Rs 219, respectively.
ICICI Bank, HDFC and Mahindra & Mahindra have plunged around 8% each to Rs 363, Rs 1,434 and Rs 305, respectively.
Jaiprakash Assocaites has shed 7% at Rs 68. Tata Power has dropped 6.7% to Rs 696.
Tata Steel and Hindalco have slipped around 6% each to Rs 162 and Rs 53, respectively.
Reliance Communications, Satyam and Sterlite have declined 4.7% each to Rs 209, Rs 249 and Rs 217, respectively.
Reliance is down 4% at Rs 1,103. SBI, TCS, Grasim, Larsen & Toubro and Ranbaxy are the other major losers.
The market breadth is fairly negative - out of 2,391 stocks traded so far, 1,875 have declined, 445 have advanced and 71 are unchanged.