The Sensex slipped to a fresh intra-day low of 8,467, and is now down 294 points at 8,546. Earlier in the day, the index had opened with a negative gap of 304 points, partial recovery had seen the index touch a high of 8,629 in morning trades.
Sterlite and Mahindra & Mahindra have tumbled over 8% each to Rs 219 and Rs 250, respectively.
Maruti has slumped over 5% to Rs 455. HDFC has shed 5.5% at Rs 1,358.
Reliance Communications and HDFC Bank have dropped around 5% each to Rs 186 and Rs 855, respectively.
SBI, DLF and Hindalco have slipped nearly 5% each to Rs 1,005, Rs 170 and Rs 49, respectively.
Reliance, ONGC, Jaiprakash Associates, TCS and Larsen & Toubro are down around 4% each.
The market breadth is extremely negative - out of 1,701 stocks traded so far, 1,269 have declined, 374 have advanced and the rest are unchanged.