Mumbai: The benchmark Sensex plunged by over 450 points at the midsession on Thursday on panic selling by investors and funds after overseas markets fell sharply due to deepening recession fears.

The Bombay Stock Exchange barometer fell by 457.39 points to 8,316.39 at 1:30pm with stocks of realty, banking and metal segments recording major losses.

The wide-based National Stock Exchange’s Nifty dipped by 132.10 points to 2,502.90.

Selling pressure picked up after the Japan’s stock market fell below 8,000 points level, after the US stocks closed at five-year low levels overnight.

In New York, the Dow Jones Industrial Average sank to the lowest since March 2003 as consumer prices and housing starts plunged and the chances for a US automaker bailout package dwindled, heightening concerns for a protracted recession.

The Sensex plunged by 386 points during early trade, extending its losses for the seventh straight session.

All the sectoral indices were trading in negative zone, with losses up to 4.86%.

The wide-based Nifty of the National Stock Exchange tanked 116.60 points, or 3.72 per cent, to 2,518.40.

Weak trends in the Asian markets also impacted the sentiments, they added.

Major losers, which dragged the Sensex down, were Reliance Industries, Reliance Infra, RCom, Infosys Technologies, Satyam Computers, Tata Consultancy, Wipro, ICICI Bank, SBI, HDFC Bank, HDFC Ltd, Larsen and Toubro, BHEL and Bharti Airtel.