Investors became poorer by over Rs 4.47 lakh crore on Friday as markets faced severe drubbing, mirroring weak trends in global equities.
The 30-share BSE benchmark dived 866.65 points or 1.56 per cent to settle at 54,835.58. During the day, it tumbled 1,115.48 points or 2 per cent to 54,586.75.
Tracking an extremely weak trend in equities, the market capitalisation of BSE-listed firms tumbled Rs 4,47,172.57 crore to Rs 2,55,17,716.80 crore.
Weak global markets, unabated foreign fund outflows and firm crude oil prices played spoilsport for equities.
Foreign institutional investors offloaded shares worth Rs 2,074.74 crore on Thursday, according to stock exchange data.
Elsewhere in Asia, markets in Hong Kong, Shanghai and Korea settled significantly lower, while Tokyo ended higher.
Exchanges in Europe were trading in the negative zone in the afternoon session.
Stock exchanges in the US fell sharply in the overnight trade on Thursday.
Meanwhile, international oil benchmark Brent crude jumped 2.01 per cent to USD 113.3 per barrel.
"The single important factor roiling global equity markets is the reemergence of inflation as a major threat and market's scepticism over the central banks' ability to contain inflation without triggering a sharp economic slowdown.
"Nasdaq is at one-year lows and S&P 500 appears to be moving in that direction. India cannot remain uncoupled from this trend particularly when FPIs are on a selling spree and have more firepower to remain bearish," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial
Services.
From the Sensex pack, Bajaj Finance, Axis Bank, Bajaj Finserv, Nestle, Wipro, HDFC, Infosys, HDFC Bank and UltraTech Cement were the major laggards.