Global downturn worries and Asian cues pulled the 30-share Bombay Stock Exchange benchmark Sensex on Friday down by 328 points or 2% to 16,141.7.
The index touched 15,988.8 in intraday trade, the lowest level seen in 15 months. The National Stock Exchange index Nifty also ended lower at 4,845.7 points, down 98.5 points or 2%.
Gold continued to defy naysayers, hitting R27,921 for 10 grams at MCX (Multi Commodity Exchange) for October future contract, a rise of 2.8%. It breached the significant R28,000 mark in Delhi's bullion market to close at R28,150.
"Uncertainty in global market is keeping markets down," said Alex Mathew, research head, Geojit BNP Paribas Financials.
Investor sentiments across the world remained subdued as Japan's Nikkei closed down at 2.5%, Hang Seng in Hong Kong down at 3%, Germany's DAX was down 3.6% while UK's FTSE 100 closed down at 2.5%.
South Korea's Kospi lost a record 6.2% to sink to levels last seen during the 2008 global financial crisis.
Sector wise, IT (Information Technology), capital goods, banking index-bankex and consumer durable were most affected losing 4.4%, 4%, 2% and 1.7% respectively on Friday.