The BSE Sensex recovered some losses late Friday afternoon but was still about 230 points down at 3.20 pm.
Earlier at around 12.40 pm, the Bombay Stock Exchange Sensex, which opened the day at 16,718.8 points, was ruling at 16,294.6 points, down 3.32 per cent or 560.33 points, against Thursday's close at 16,854.93 points.
Around the same time, at the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty was at 4,833.65 points, against the previous close at 5,005.55 points, a loss of 3.43 per cent.
Indian stock markets joined the tumble in bourses around the world on Friday after Dubai government-owned holding company Dubai World, which manages that country's portfolio of businesses, said it had asked creditors for an extension of six months on debt repayments.