Equity benchmark indices Sensex and Nifty buckled under selling pressure to settle nearly 1 per cent lower on Friday as investors pared exposure to bank and IT stocks ahead of the earnings season starting next week.
A depreciating rupee against the US dollar further weighed on sentiment, traders said.
The 30-share BSE Sensex tumbled 720.60 points or 0.90 per cent to close at 79,223.11 despite a positive beginning. During the day, it slumped 833.98 points or 1.04 per cent to 79,109.73.
The NSE Nifty tanked 183.90 points or 0.76 per cent to 24,004.75.
From the Sensex pack, Zomato, HDFC Bank, Tech Mahindra, Adani Ports, Tata Consultancy Services, ICICI Bank, Sun Pharma, Larsen & Toubro, HCL Tech and ITC were the major laggards.
On the other hand, Tata Motors, Nestle, Titan, Hindustan Unilever and Reliance Industries were among the gainers.
In Asian markets, Seoul and Hong Kong settled in the positive territory while Shanghai ended lower. Japanese markets were closed for the New Year holiday.
Markets in Europe were trading lower. US stocks were in the negative territory on Thursday.
Foreign Institutional Investors (FIIs) turned buyers on Thursday after remaining net sellers for the past many days.
They bought equities worth Rs 1,506.75 crore, according to exchange data.
Global oil benchmark Brent crude declined 0.43 per cent to $75.60 a barrel.
