The Sensex dropped 322 points, while the Nifty dropped 100 points in trade at 11.40 AM. The top losers in trade were BPCL which dropped 4 per cent, Coal India dropped 3.29 per cent, HDFC Bank and HDFC both dropped 2 per cent in trade.
All of the Nifty components, apart from Bajaj Auto, Dr Reddy's and Gail were trading in the red. The Bank Nifty was one of the worst hit with ICICI Bank, Allahabad bank, Oriental Bank, Canara Bank, Syndicate Bank and Union Bank.
Realty stocks were hammered down with Anant Raj Industries, HDIL, Indiabulls and Unitech dropping sharply in trade.
The Infra sector was one of the worst affected with Bhel, IVRCL and Reliance Communications dropping more then 3 per cent in trade.
Metal stocks also tumbled in trade today with Bhushan Steel, Jindal Saw and Jindal Steel all falling. Markets completely discounted the RBI rate cut today, focusing instead on political uncertainty at the centre.