The BSE benchmark Sensex tumbled by over 298 points to close below the 17,000-mark on Friday due to heavy profit booking by funds, especially in metal and refinery stocks, after the recent rally.
Snapping the three-day gaining streak, the 30-share index closed lower by 298.57 points at 16,866.97 points. During the day trade, the index touched high of 17,211.80 and a low of 16,849.27 points.
The broad-based National Stock Exchange index Nifty lost 93.80 points to 5,059.45, after moving between 5,163.75 and 5,046.80.
A weak trend in the Asian region and lower opening in Europe before a meeting of Group of Seven rich nations on deepening economic worries influenced the trading sentiments, brokers said.
Foreign investors remained jittery after a speech by the US Fed chief lacked details on plans to spur economic growth following a jobs package plan by US President Barack Obama last night.
Steelmakers suffered major losses after the ministry lowered its forecast for demand growth.
Refinery stocks led by the most weighted Reliance Industries (RIL) fell on emergence of profit selling.
RIL dropped 3.33% to Rs 825.10 and Infosys by 2.88% to Rs 2,271.20. Tata Steel lost 3.20% to Rs 476.95.
Other losers in the index kitty were BHEL, HDFC Bank, ICICI Bank, SBI, Larsen and Toubro, Maruti Suzuki, Tata Motots, Tata Power, TCS, DLF and Coal India.