Midcaps like Reliance Capital, Mercator line and GMR Infrastructure are among the top losers.

At 14.20 hrs IST, the Sensex is down 471.73 points or 2.62% at 17526.66, and the Nifty down 155.60 points or 2.91% at 5195.40.

About 651 shares have advanced, 2334 shares declined, and 66 shares are unchanged.

All the key BSE indices were in red , however IT index is trading flat and select telecom stocks are trading in green.

Metal, realty, capital goods and oil & gas stocks are among the worst hit. The breadth is exremely weak as pressure is seen in all the sectors. Capital goods, metal, realty indices are down over 5%.

On the macroeconomic front, inflation came in at a 5 year low after 2002 at 3.07%