The Bombay Stock Exchange benchmark, Sensex, fell below 9,000 points level by losing over 391 points at noon on Monday as funds remained net sellers.
The Sensex plunged by 391.87 points at 8,993.55 at 1200 hrs, a level last seen on October 28, on heavy selling in heavy-weight stock in bank, realty, capital goods and metal segments.
Similarly, the wide-based National Stock Exchange index Nifty dropped by 107.50 points at 2702.85 following a steep fall in shares of Reliance Industries, Infosys and ICICI Bank.
Marketmen said the selling pressure gathered momentum following deteriorating economic outlook as Japan joined the list of economies in recession and a meeting of world leaders failed to produce concrete measures to tackle the global crisis.
At the G-20 summit on Saturday, Prime Minister Manmohan Singh warned that the financial meltdown has exploded into a systemic crisis while world leaders called for a strong regulatory mechanism to bring transparency in financial system and stimulate growth to beat recession.