Nifty recovered some ground after falling below 4000 levels in the morning trade. It had plunged to 3985, its lowest since May 11, 2007. The Sensex meanwhile is trading flat at 13485 levels.

Selling is visible in realty, capital goods, metal, oil & gas and banking counters by over 0.9 per cent each.

“We are in the bear market. Heavy selling will be evident on every rise. So, the investors need to be cautious and bet on selective counters,” said Sudhanshu Pandey, Technical Analyst, LKP Shares.

Other Asian markets are trading flat on Tuesday. While Japan's Nikkei is in the green by 0.2 per cent, South Korea’s Kospi is in red territory by 0.3 per cent each.

DLF, sheds more than 2.8 per cent, is the biggest loser among the BSE-30 scrips. Other major losers in this pack are Reliance Communication, Housing Development Finance and Tata Motors.

Realty tanks

BSE realty index, shedding 195 points or 4.3 per cent, is the biggest loser among the sectoral indices. Indiabulls Real Estate, Kolte-Patil and Housing Development & Infra are among the prominent losers in this pack.