The Nifty is down 138 points at 3,955.
Tata Steel has slumped over 9% to Rs 673. DLF has plunged 7.5% to Rs 392.
Reliance Infrastruture, Grasim and Reliance Communications have tumbled around 5.5% each to Rs 747, Rs 1,679 and Rs 396, respectively.
ICICI Bank, Jaiprakash Associates and Tata Motors have slipped 5% each to Rs 592, Rs 138 and Rs 393, respectively.
SBI has rebounded into the positive zone and is up 1.5% at Rs 1,096.
Out of 2,575 stocks traded so far, 1,890 have declined, 610 have advanced and the rest are unchanged.
