Equity benchmark indices plunged over 2 per cent during early hours on Friday on the back of rising global concern on the resurgence of coronavirus infections.
Fear of a second wave of COVID-19 related cases has sparked worries among investors that it will delay the economic recovery.
At 10:15 am, the BSE S&P Sensex was down by 749 points or 2.23 per cent at 32,790 while the Nifty 50 edged lower by 218 points or 2.21 per cent at 9,684.
All sectoral indices at the National Stock Exchange were in the red with Nifty PSU bank down by 3.8 per cent, private bank by 3.7 per cent, financial service by 3.2 per cent, metal by 2.8 per cent and auto by 2.2 per cent.
Among stocks, IndusInd Bank lost by 6 per cent to Rs 491.55 per share. Kotak Mahindra Bank tumbled by 4.1 per cent, ICICI Bank by 3.8 per cent and Axix Bank by 3.6 per cent.
Bajaj Finance lowered by 3.4 per cent to Rs 2,258.05 per unit and Bajaj Finserv levelled 3.7 per cent lower at Rs 4,965.45.
The other prominent losers were Tata Motors, Zee Entertainment, UPL and ONGC. However, those which gained were Bharti Infratel, Bharti Airtel, Sun Pharma and Bharat Petroleum Corporation.
Meanwhile, Asian shares fell sharply after an overnight plunge at Wall Street amid concerns that a resurgence of coronavirus cases could stunt the pace of recovery in economies reopening from lockdowns.
MSCI's broadest index of Asia Pacific shares outside Japan slid by 1.3 per cent while shares in China fell by 0.67 per cent. Stocks in South Korea fell by 2.24 per cent as some investors booked profits from a recent rally in global equities.
( With inputs from ANI )