The Sensex opened with a negative gap of 250 points at 13,856, and soon touched a low of 13,731. The index has recovered partially from the day's low and is now down 156 points at 13,951.
The NSE Nifty is down 16 points at 4,175.
HDFC and Infosys have plunged over 4% each to Rs 2,172 and Rs 1,719, respectively.
ICICI Bank and HDFC Bank have shed around 3% each at Rs 684 and Rs 1,030, respectively.
Satyam, Tata Motors and DLF have dropped nearly 2.5% each to Rs 443, Rs 470 and Rs 430, respectively.
SBI and ITC have slipped over 2% each to Rs 1,186 and Rs 187, respectively.
ONGC and Ranbaxy have gained around 1.5% each at Rs 868 and Rs 532, respectively.