The Sensex is now down 286 points at 9,019.
Tata Steel has slumped 7% to Rs 171, and ICICI Bank has plunged 6.8% to Rs 381.
DLF has tumbled 7% to Rs 146. Hindalco has dropped 5.3% to Rs 42, and Mahindra & Mahindra has shed 5% at Rs 299.
Reliance Communications has slipped 4.7% to Rs 163. Sterlite, Reliance and HDFC Bank have declined over 4% each to Rs 251, Rs 1,265 and Rs 877, respectively.
Reliance Infrastructure, Tata Power, TCS and Maruti are down around 4% each.
The market breadth is very negative - out of 2,400 stocks traded so far, 1,715 declined, 585 advanced and the rest were unchanged.