Equity benchmark indices Sensex and Nifty nursed losses for the third consecutive session on Friday, in lockstep with a weak trend in global equities as concerns over economic growth and quarterly earnings sapped risk appetite.
Surging crude oil prices and a strengthening dollar index also hit investor sentiment.
In a volatile trade, the 30-share BSE benchmark Sensex declined 241.30 points or 0.31 per cent to settle at 77,378.91. During the day, the benchmark gyrated 820.15 points between the intraday high of 77,919.70 and a low of 77,099.55.
As many as 3,167 stocks declined, 827 advanced and 84 remained unchanged on the BSE.
The NSE Nifty dropped 95 points or 0.40 per cent to 23,431.50.
On the weekly front, the BSE benchmark slumped 1,844.2 points or 2.32 per cent, and the Nifty dropped 573.25 points or 2.38 per cent.
"Domestic market sentiment remained subdued due to rising crude oil prices, driven by supply concerns, and a strengthening dollar index. Despite the IT sector's resilience following positive early Q3 results, broader indices bled due to uncertainties surrounding Trump policies and high valuations.
"Consolidation may persist in the near term, yet investors are closely watching the US non-farm payroll data today for further guidance," Vinod Nair, Head of Research, Geojit Financial Services, said.
From the 30-share blue-chip pack, IndusInd Bank, NTPC, UltraTech Cement, Sun Pharma, Axis Bank, State Bank of India, Tata Steel, Power Grid, Adani Ports and Kotak Mahindra Bank were among the major laggards.
Tata Consultancy Services jumped nearly 6 per cent after the IT services company reported an 11.95 per cent jump in the December quarter net profit to Rs 12,380 crore.
Tech Mahindra, HCL Tech, Infosys and Bajaj Finserv were the other big gainers.
"Markets continued its downward trajectory as rupee scaling new lows due to strengthening dollar has further dampened investors’ sentiment. Amid concerns of subdued economic growth and expectations of a slowdown in the quarterly earnings, investors cut their bet on banking and mid and small-cap stocks.
"With expensive valuations of Indian markets at large still a concern, investors would mostly resort to stock-specific activities," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
The BSE smallcap gauge dropped 2.40 per cent, and the midcap index declined 2.13 per cent.
Among BSE sectoral indices, power tanked 3.07 per cent, utilities (2.86 per cent), realty (2.64 per cent), industrials (2.08 per cent), commodities (2.05 per cent) and consumer durables (1.98 per cent).
BSE Focused IT jumped 3.17 per cent, IT (2.65 per cent) and teck (2.24 per cent) were the biggest gainers.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled lower.
European markets were trading lower. US markets were closed on Thursday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 7,170.87 crore on Thursday, according to exchange data.
Global oil benchmark Brent crude jumped 2.02 per cent to USD 78.47 a barrel.
In the previous session, the 30-share BSE benchmark dropped 528.28 points or 0.68 per cent to sink below the 78,000 level at 77,620.21. The Nifty slumped 162.45 points or 0.69 per cent to 23,526.50.
Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.