New Delhi: The Bombay Stock Exchange benchmark Sensex shed its early gains on Wednesday, 7 January tumbling from its 10,000 level by over 700 points on heavy selling resulting from reports of Satyam Computer Services Chairman resigning.

After noon Sensex failed to regain as investors continued to be spooked by the Satyam scandal in which the chief Ramalinga Raju has confessed to inflating profits on balance sheet.

Markets had commenced the day higher by 133.79 points, the 30-share BSE index then dropped by 749.05 points to end at 9586.88. NSE Nifty dropped by 192.40 points to end at 2920.40.

IT Index dipped ny nearly 10%, the maximum among other losers from the banking, oil and gas, metal and power segments.

Satyam topped the BSE losers pack by dropping 77.69% to Rs 39.95, it was followed by Jaiprakash Associates by 29.15% to Rs71.45, Reliance Communications Ltd. by 17.02% to Rs206.50, DLF Ltd by 13.54% to Rs 234.60 and Reliance Infrastructure by 13.54% to Rs 559.35.

Meanwhile, recession fears still prevailed in Asia with Hang Seng closing more than 3% lower but Nikkei ended 1% up.