Continuing with its freefall, the BSE benchmark Sensex on Friday tanked by 351 points to trade below 17,000 points in early trade on hefty sell-off by foreign funds amid the meltdown on the global markets on fears that China may further tighten its monetary policy.
The wide-based National Stock Exchange index Nifty, too, dipped below 5,000 points.
The 30-share Bombay Stock Exchange index, Sensex, which had lost nearly 590 points in the past three sessions, dipped below 17,000 points by losing 351.77 points to 16,699.37, lowest level since December 23, last year.
The wide-based Nifty plunged by 110.85 points to trade at 4,983.30.
All the sectoral indices were trading in the negative zone with losses up to 3.14 per cent, with capital goods and metal sectors leading the fall.
China's decision on January 20 to squeeze lending to cool down an overheated economy impacted the market sentiments, especially among the foreign funds. According to the BSE data FIIs have been net sellers in the last few days.
A week opening of the overseas markets also hit the trading sentiment. Hong Kong's benchmark Hang Seng Index was down 348.09 points at 20,514.58 in the first few minutes of trade today, while Japan's Nikke opened lower by 148.16 points at 10,720.25 in early trade.