New Delhi - Indian stocks tumbled in morning trading on Monday as the benchmark Sensex plunged 5.6 per cent on nervous selling by funds and investors on reports that US investment banker Lehman Brothers appeared ready to file for bankruptcy.

The 30-share-sensitive index was trading at 13,210 levels, a loss of 786 points, or a 5.61 per cent at 11:30 local time (0600 GMT), over an hour after opening.

Realty, capital goods, oil and pharma stocks declined sharply.

At 3,988.60 points, the broader S&P CNX Nifty of the National Stock Exchange was down 5.67 per cent or 239.85 points behind its previous closing mark.

Market analysts said the market went into the bearish mode on news reports that Lehman Brothers was ready to file for bankruptcy.

The terrorist strike in Indian capital Delhi on Saturday which claimed 21 lives and the uncertainties on the India-US civilian nuclear deal also weighed down the market sentiment. (dpa)