The BSE benchmark Sensex slumped down over 500 points to below 15600 at midsession trading on Wednesday.
While Nifty fell below 4,700 to hit 2011 lows, amid worries about faltering global growth. This is the lowest level in two years.
Earlier the Sensex plummeted by over 220 points in opening trade, wiping out gains registered in yesterday’s brief comeback following an eight-session losing streak on profit-booking ahead of monthly expiry in the derivatives segment and negative US cues.
The 30-share barometer, which gained 119.32 points in the previous session, was down by 220.70 points, or 1.37 percent, at 15,844.72 within minutes of the opening bell Wednesday.
The wide-based National stock Exchange Nifty index also fell by 67.45 points, or 1.40 percent, to 4,744.90.
All the sectoral indices, led by metal, tech and banking stocks, were trading in the negative zone, with losses of up to 1.54 percent.
Brokers said a fresh bout of selling by funds and retail investors, cashing in on the brief recovery of the equity markets yesterday amid a weak trend in global markets, weighed down the trading sentiment.
In addition, they said, expiry of monthly derivative contracts later this week and fresh concerns about the health of the global economy after a downward revision of the US growth rate in the third quarter of 2011.
Meanwhile, Hong Kong’s Hang Seng index was down by 1.76 percent in morning trade and Japan’s Nikkei fell by 0.40 percent. In the US, the Dow Jones Industrial Average shed 0.46 percent yesterday.