The benchmark index for the equities markets, the 30 scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), recouped some of its intra day losses and closed down 374 points on Friday.
The Sensex, which opened at 17,350.37 points, closed at 17,320.91 points (provisional), down 372.27 points or 2.1% from its previous close at 17,693.18 points.
It had fallen over 700 points, below the 17,000 mark in intra day trade.
The 50 scrip S&P CNX Nifty of the National Stock Exchange (NSE) also ended deep in the red at 5,224.05 points, down 2.02 %.
Broader markets too saw a sell-off. The BSE midcap index ended 2.04 % down and the BSE smallcap index closed 2.9 % down.
Global markets tumbled over fears of a recession in the US economy. Panic selling spread to almost all global bourses.