The Sensex is now down 746 points at 10,950.
Sterlite and Satyam have nose-dived over 13% each to Rs 271 and Rs 242, respectively. Wipro has plunged 12% to Rs 270.
ICICI Bank, HDFC Bank and Jaiprakash Associates have tumbled over 10% each to Rs 436, Rs 1,015 and Rs 90, respectively.
Hindalco, Reliance Communications, TCS and Reliance Infrastructure have shed around 9% each to Rs 86, Rs 273, Rs 523 and Rs 591, respectively.
Tata Steel has dropped 8.6% to Rs 327. Tata Power and Reliance have slipped around 7.5% each to Rs 710 and Rs 1,550, respectively.
ACC, Infosys, Grasim, HDFC and Ranbaxy are down around 6-7% each.
The market breadth is extremely negative - out of 2,323 stocks traded so far, 2,114 have declined, 185 have advanced and the rest are unchanged.
