The Sensex tried to recover but has slipped further to a low of 15,255, down 345 points from the day's high. The index is now down 122 points at 15,288.
The BSE Metal index has surged 3.5% to 12,429.
DLF has slipped 4.5% to Rs 374. Ranbaxy has dropped 4% to Rs 289. Bharti Airtel and Mahindra & Mahindra have shed 3.5% each at Rs 826 and Rs 788, respectively.
Reliance Communications, SBI, Sun Pharma, Wipro, Tata Motors, Maruti Suzuki, Tata Power, BHEL, HDFC, ACC, HDFC Bank, Hindustan Unilever, Grasim and Infosys have declined 1-3% each.
On the other hand, Sterlite has gained 3% at Rs 724. Hindalco and Tata Steel have added 2.5% each to Rs 104 and Rs 464, respectively.
Reliance, Jaiprakash Associates and Reliance Infrastructure have moved up 1% each.
The market breadth continues to be negative - out of 2,688 stocks traded, 1,824 have declined while 801 have advanced.