The Bombay Stock Exchange benchmark Sensex plunged 407 points in late morning trade on Monday on aggressive selling by funds and investors sparked by weak trends at Asian markets and inflationary concerns.
At 1145 hrs, Sensex tumbled by 407.84 points to 14,163.45 as heavy-weight stocks like Reliance Industries, Grasim Industries, Larsen and Toubro, BHEL, ICICI Bank, SBI and ACC lost notable ground.
Similarly, wide-based National Stock Exchange's index Nifty fell below psychological level of 4,300 by losing 122.05 points to 4,225.50.
A downward march in the market received another punch as international rating agency Morgan Stanley lowered its December 2008 estimate for Sensex to 13,224 points from the earlier forecast of 14,571.29.
Market remained under selling pressure as Asian markets fell sharply in the early trade, said traders. High inflation figures also hit the market sentiments, they added.