Markets came off 17-month highs after benchmark BSE Sensex plunged 248 points to 28,797.25, tracking weakness in global peers after North Korea tested a nuclear warhead, while domestic investors remained on the sidelines ahead of key macroeconomic data.
Sentiment also remained subdued amid uncertainty over the European Central Bank's (ECB) failure to deliver on new stimulus measures.
The broader markets too felt the heat with BSE mid-cap and small-cap indices falling 0.99 per cent and 0.47 per cent, respectively.
On a weekly basis, the Sensex climbed 265.14 points or 0.92 per cent and the NSE Nifty rose 57.05 points or 0.64 per cent. Both indices recorded second weekly gains.
Shares of Yes Bank plunged over 4 per cent to Rs 1,277.25 after the company deferred plans to raise USD 1 billion, citing extreme volatility due to misinterpretation of new QIP guidelines.
India's largest steelmaker SAIL plunged 6 per cent as the company's standalone net loss widened to Rs 534.92 crore in June quarter.
"Indian markets had a soft ending to a stupendous week, with crucial IIP and CPI data releases scheduled Monday. ECB's decision on stimulus weighed on global markets but FII inflows and value buying continue to support prices," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial.
The 30-share Sensex after opening higher at 29,062.90, slipped into negative zone to touch a low of 28,755.08, before settling 248.03 points or 0.85 per cent down at 28,797.25.
The 50-issue NSE Nifty cracked below 8,900 by falling 85.80 points or 0.96 per cent to end at 8,866.70.
A cautious stance by investors ahead of IIP and inflation data, slated for next week, also influenced trading sentiment.
Overseas, Asian stocks ended lower after the ECB surprised markets yesterday by deciding not to extend the deadline of its bond-buying program, while North Korea successfully testing a nuclear warhead today also spooked global investors.
Key indices in Asia, like China, Singapore, South Korea and Taiwan ended lower by 0.55 per cent to 1.25 per cent.
Europe was also lower with key indices in France, Germany and the UK down between 0.09 per cent and 0.27 per cent.
In a surprise move, the government yesterday banned Rs
500 and Rs 1,000 currency notes in a bid to curb black money.
In a result that stunned the markets globally, Donald Trump was today elected the President crushing Democratic rival Hillary Clinton.
In domestic market, foreign portfolio investors (FPIs) bought shares worth a net Rs 86.66 crore yesterday, as per provisional data.
Among the 30-share Sensex pack, 20 stocks ended lower while 10 finished higher.
TCS was the top Sensex loser, skidding 4.93 per cent, followed by Maruti 4.68 per cent, Hero Motoco 3.97 per cent, M&M 3.43 per cent, Adani Ports 2.97 per cent, Bajaj Auto 2.93 per cent, HDFC 2.86 per cent, ITC 2.78 per cent, Infy 2.74 per cent, Tata Steel 2.15 per cent and HUL 1.80 per cent.
However, Dr Reddy rose by 5.04 per cent.
It was followed by Sun Pharma 4.07 per cent after the company's US subsidiary Taro Pharmaceutical Industries (Taro Pharma) reported better-than-expected Q2 September 2016 results yesterday.
Other big gainers that supported the key indices included SBI 2.83 per cent, Power Grid 1.95 per cent, Gail 1.44 per cent and Lupin 1.31 per cent.
Among the S&P BSE sectoral indices, realty fell by 10.23 per cent followed by consumer durables 4.18 per cent, IT 3.28 per cent, teck 2.84 per cent, auto 2.52 per cent, FMCG 2.11 per cent, industrials 1.64 per cent and power 1.25 per cent, while healthcare moved up by 1.48 per cent, bankex 0.18 per cent and oil&gas 0.02 per cent.
The market breadth remained negative as 2,157 stocks ended in red, 610 closed in green while 97 ruled steady.
The total turnover on BSE amounted to Rs 5,463.21 crore, higher than turnover of Rs 3,142.77 crore registered during the previous trading session.
