However, on the opening of European markets the benchmarks recovered marginally from the day's lows.
BSE Sensex shut shop at 16,835.56, down 159.04 points and NSE Nifty closed at 5059.90, down 33.60 points.
Posting a 44 per cent surge in its Q4 results, L&T was one among the top gainers on the Sensex. The company's shares surged 5.03 per cent to Rs 1,606.6.
The other top gainers were HUL up 2.57 per cent, SBI up 1.64 per cent, Bharti Airtel up 0.78 per cent and Cipla up 0.26 per cent.
The losers were DLF down 4.12 per cent, Wipro down 3.34 per cent, ACC down 3.29 per cent, Tata Motors down 3.64 per cent and Jaiprakash Associates down 3.2 per cent.
4: 31 PM
Sensex down 266 pts; Rel Infra, DLF, Axis dip
With the European markets opening flat, the Indian indices recovered marginally from the day's lows. They are, however, in the red zone.
At 2:00 pm, BSE Sensex was trading at 16,727.64, down 266.96 points and NSE Nifty was at 5021.55, down 71.95 points.
Surging 20 per cent, ABB became the top gainer. Siemens was the other gainer, up 6 per cent while Kotak Mahindra, Bharti Airtel and Hindalco were also trading in green.
Reliance Infra, DLF, Tata Motors, Axis Bank and Wipro were down 3.5 to 5 per cent.
Karnataka Bank, Coromandel International, Piramal Healthcare, GlaxoSmith Consumer and Hind Nat Glass were the midcap gainers, while Prakash Industries, HT Media, Aban Offshore, Bhushan and Gee Kay Finance lost.
Among the smallcaps, Sujana Towers, JMD Telefilms, Bartronics, Ratnamani Metal and Network 18 were up while Lakshmi Energy, Seamec, Thiru Arooran, Vipul and DCM Shriram Consolidated dipped.
Mkts continue to plunge; Sensex suffers selling
The Indian benchmarks continued their southbound journey. While Nifty lost over 120 points, Sensex was witnessing huge selling pressure.
The broader indices also followed the suit and were trading in red.
At 12: 07 pm, BSE Sensex was down 413.56 points or 2.43 per cent at 16581.04, and NSE Nifty was down 122.70 points or 2.41 per cent at 4970.80.
BSE midcap and smallcap indices were down 2 per cent each.
Reliance, Infosys, ICICI Bank, L&T, TCS, SBI and ITC were trading negative weighing on the markets.
Prakash Industries, Bhushan Steel, IndusInd Bank, Dalmia Cement and IVRCL Infra were midcap losers, down 5 to 10 per cent. Karnataka Bank, Piramal Healthcare, Marico, Hind Nat Glass and GlaxoSmith Consumer were the gainers, up 2 to 4 per cent.
Among the smallcaps, Lakshmi Energy, Panoramic Universal, Zandu Realty, Heidelberg Cement and Ganesh Housing were the losers, down 5.5 to 7.5 per cent.
Sujana Towers, JMD Telefilms, Network 18, Fedders Lloyd and Subhkam Capital were gainers, up 3 to 8 per cent.
12: 24 PM
Mkts open gap down on weak global trading
On weak trading in global markets, the Indian markets too opened the day on a negative note.
With the global markets down up to 2 per cent, Indian markets opened with a gap down of about 2 per cent.
At 9:03 am, BSE Sensex was down 306.10 points or 1.80 per cent at 16688.50, and the Nifty down 82.70 points or 1.62 per cent at 5010.80.
In the largecap space, Rel Infra, JP Associates, DLF, Tata Steel, Hindalco, Sterlite Ind, SBI, Wipro, ACC, Ambuja Cements, Unitech, Infosys, JSPL, Rel Comm, Rel Cap, L&T, RIL were the top losers.
The Asian markets were also trading weak.
9: 44 AM