The Sensex slipped to a low of 9,013 - down 328 points from the day's high - and is now down 75 points at 9,154.
Earlier in the day, the index opened 25 points lower at 9,205, slipped into red and then rebounded and touched a high of 9,341.
Infosys has slumped over 4% to Rs 1,144. TCS has plunged 3.7% to Rs 529.
Jaiprakash Associates and NTPC have shed 3.5% each at Rs 69 and Rs 159, respectively.
Tata Steel and Hindalco have dropped over 3% each to Rs 182 and Rs 51, respectively.
Satyam has slipped 2.5% to Rs 227. Sterlite and Hindustan Unilever have declined 1.8% each to Rs 252 and Rs 233, respectively.
Larsen & Toubro, Reliance and Tata Power are down over 1.5% each to Rs 735, Rs 1,140 and Rs 673, respectively.
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Reliance Communications has rallied over 3% to Rs 203.
Grasim and Tata Motors have rallied 2.5% each to Rs 953 and Rs 154, respectively.
ACC has gained 2% at Rs 437.
The market breadth is marginally positive - out of 1,887 stocks traded so far, 936 have advanced, 870 have declined and the rest are unchanged.