The Sensex slipped to a low of 15,240, down 328 points from the day's high.
The index is now recovering and is at 15,361, down 106 points.
The BSE IT index is down 3% at 3,292.
Mahindra & Mahindra and Hindalco have soared over 4% each to Rs 802 and Rs 98, respectively.
HDFC Bank and Ranbaxy have added 3% each to Rs 1,540 and Rs 307, respectively.
Bharti Airtel, Tata Steel, Sterlite and HDFC Bank are up 1.5-2.5% each.
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ACC, Infosys and Jaiprakash Associates have slipped around 4% each to Rs 862, Rs 1,735 and Rs 215, respectively.
SBI, BHEL and ONGC dropped over 3% each to Rs 1,696, Rs 2,272 and Rs 1,128, respectively.
Wipro, Reliance Infrastructures, DLF, Hindustan Unilever, ICICI Bank, Reliance, Tata Power and Maruti are down 1-2.5% each.
The market breadth is still in negative, out of 2,679 shares traded , 809 have advanced and 1,813 have declined far on the BSE.