Crude oil prices escalating to more than $99 a barrel in international market on Wednesday led to a major fall at domestic bourses with the benchmark Sensex tumbling nearly 450 points at mid-session.
Global funds sold stocks of blue chip firms mainly in capital goods, banking and metal segments.
The 30-share Bombay Stock Exchange barometer, which commenced the day on a weak note due to rising concerns over mortgage crises in the US, plunged 448.02 points to 18,832.78 at 12 45 hours after the crude oil surged to over $99 a barrel.
The broad-based National Stock Exchange's Nifty too shed 143.15 points to 5,637.75 as most of the index-linked stocks turned weak.
Major losers were capital goods stocks as the segment index dropped 605.56 points to 19,743.86, followed by banking index falling 403.10 points to 10,361.43. Metal index fell by 411.98 points to 16,898.71 and oil and gas index by 226.41 points to 11,910.17.
Marketmen said crude oil rose above 99 dollars a barrel for the first time today as weakening US dollar increased demand for commodity.
Reliance Industries, India's largest company by market value, declined Rs 59 to 2,741.