The Sensex, which showed some signs of a recovery around noon, has slipped further into the negative zone on the back of continued selling action witnessed in several large, medium and small cap stocks.
Realty, metal, capital goods and power stocks plunged the most.
Mirroring the sell-off, several stocks from banking, IT and auto segments also fell sharply.
Select pharma, oil and consumer durables stocks hold on in the positive territory remained quite subdued.
At 1:02 p.m., the 30-share index Sensex is trading down 121.84 points at 8,692, whereas the broad based Nifty lost 28.70 points at 2,685.10.
The stocks, which topped the selling charts this afternoon were Jaiprakash Associates (down 7.4%), Mahindra & Mahindra (down 6.9%), Tata Power (down 4.3%) and Larsen & Toubro (down 3.35%).
Tata Steel, State Bank of India, Wipro and Hindalco lost between 2.5% - 3%.
The stocks that lost by over 2% included Hindustan Unilever, Sun Pharmaceuticals, BHEL, NTPC and Infosys Technologies. Sterlite Industries, DLF, ICICI Bank, Tata Consultancy Services, ACC, Maruti Suzuki and Bharti Airtel also recorded sharp losses.
Nifty stocks Unitech and Zee Entertainment have slipped by more than 6%. Nalco declined by around 5.5%. PNB lost 4% to Rs 410.
BPCL, Siemens, Reliance Capital, Tata Communications, GAIL India, Power Grid Corporation, Ambuja Cements, Cairn India and Suzlon Energy also recorded sharp losses.
Canara Bank, which reported good quarterly numbers, was also down by 15% to Rs 173.55 due to the sharp rise in NPA. IVRCL Infrastructure lost 8.35%, while HDIL fell 7.8%.
Other stocks, which also declined sharply this afternoon, included Shriram Transport, Oriental Bank of Commerce, Jindal Steel, Rolta India, Kotak Bank, United Spirits, United Phosphorus, GMR Infrastructure, Essar Oil, IFCI, Union Bank of India, Godrej Industries and Welspun Gujarat.
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