The Bombay Stock Exchange benchmark Sensex dropped further by 213.61 points at 1100 hrs due to persistent selling pressure on negative cues from global markets.
All the sectoral indices were in the red. Capital goods, realty and banking shares were the worst hit.
The future deal remained uncertain with the postponement of a key meeting between the government and the left on the proposed nuclear deal between US and India.
The BSE Sensex opened lower at 15,250.47 and hovered between 15,259.36 and
15,156.75 before being quoted at 15,208.70 at 1100 hrs, showing a fall of 213.61 points from the previous close of 15,422.31.
The capital goods dropped by 293.35 points to 11,825.99, realty stocks by 146.63 points to 5,739.15 and Bankex by 204.50 points to 7,101.94.
Key indices in Asian markets were down by 1.62 per cent to 3.37 per cent at the opening session.
The Dow Jones industrial average hit its lowest level in three months yesterday as worries about a weak US economy compounded by credit sector concerns dragged down shares in banks, autos and transport firms.