The Sensex has recovered partially from its intra-day low of 8,908, and is now down 29 points at 8,947.
Tata Steel, Tata Motors and BHEL have plunged around 3% each to Rs 171, Rs 171 and Rs 1,415, respectively.
Hindustan Unilever, Hindalco and HDFC Bank have shed around 2.5% each at Rs 227, Rs 44 and Rs 822, respectively.
Reliance Communications and SBI have dropped 2% each to Rs 157 and Rs 943, respectively.
Larsen & Toubro, Jaiprakash Associates and Grasim are down around 1.7% each at Rs 625, Rs 78 and Rs 1,446, respectively.
Sun Pharma has rallied over 2% to Rs 1,018. TCS has gained 1.5% at Rs 514.
Infosys, Maruti and HDFC are up over 1% each at Rs 1,294, Rs 727 and Rs 1,368, respectively.
The market breadth is marginally positive - out of 2,347 stocks traded so far, 1,192 have advanced, 1,062 have declined and the rest are unchanged.