After initial recovery of about 109 points, the Bombay Stock Exchange benchmark Sensex plunged by 274 points at 1115 hrs on selling by foreign funds after rupee continued its slide against the US dollar.
The 30-share index, which rose by 108.91 points in early trade, slipped into the negative zone with a fall of 274.15 points at 14,050.14 after most of the sectoral indices were sharply down. The Sensex had lost over 620 points in the past three sessions.
Similarly, the National Stock Exchange's index Nifty also fell by 60.65 points to 4,229.65 on heavy selling by funds in blue-chip stocks led by refinery and banking segments.
Stock brokers said continued slide in Indian rupee which depreciated by another 18 paisa at 45.71 against the US currency mainly dampened the trading sentiments, triggering major sell-off by foreign funds in heavy-weight stocks.
Major losers which dragged the Sensex down were Infosys Technologies, Tata Consultancy, Satyam Computers, State Bank of India, ICICI Bank, HDFC Bak, DLF Ltd, Larsen and Toubro, Reliance Industries, Reliance Infra and Jaiprakash Associates.