The Bombay Stock Exchange benchmark, Sensex, lost 483 points in early trade on Monday on selling by funds in heavy-weight stocks, led by capital goods.
The 30-share index, which closed at 15,975.52 points on Friday, plunged by 483.44 points to 15,492.08 in the first five minutes of trade.
Similarly, the National Stock Exchange index Nifty dropped by 136.95 points to 4,634.65.
Marketmen said selling pressure gathered momentum following reports of a meltdown in the US market on rising concern of recession.
They said, the Sensex suffered the most as bluechip stocks like Larsen and Toubro and Reliance Energy fell sharply.