At 10:15 am, the BSE S&P Sensex was down by 782 points or 2.65 per cent to 28,686 while the Nifty 50 edged lower by 206 points or 2.39 per cent at 8,392.
Except for Nifty FMCG and realty, all sectoral indices at the National Stock Exchange were in the negative terrain with Nifty private bank down by 2.6 per cent, financial service by 2.4 per cent, auto by 1.9 per cent and IT by 1.8 per cent.
Among stocks, private sector lender Kotak Mahindra Bank slipped by 8.5 per cent to Rs 1,185.45 per share. Adani Ports dropped by 4 per cent, Infosys by 3.4 per cent and State Bank of India by 3.3 per cent.
The other major losers were Larsen & Toubro, Bharti Infratel, Titan, Bajaj Finance and Mahindra & Mahindra. However, Britannia, IndusInd Bank, GAIL and Cipla traded with a positive bias.
Meanwhile, Asian stocks clung to gains but risks for equities remained large as the coronavirus pandemic led the multilateral institution IMF to declare a global recession.
MSCI's broadest index of Asia Pacific shares outside Japan rose by 0.23 per cent as a slowdown in new coronavirus cases and rising iron ore prices lifted the market.
Shares in China rose by 0.18 per cent and in South Korea by 0.19 per cent. But Japanese shares fell by 1.05 per cent as a rapid increase in coronavirus infections in Tokyo fuelled speculation the government will place the capital on lockdown.
A day earlier, Wall Street tumbled with the Dow registering its biggest quarterly fall since 1987 and the S&P 500 its steepest quarterly drop since a decade ago on growing evidence of the massive downturn the pandemic will incur.