The Sensex ended the day lower by a whopping 360 points (provisional), erasing much of the gains of Thursday. The Nifty on the other hand ended lower by 103 points.
Among the top losers in trade today were banking stocks, which reacted to a hike in repo rates. Yes Bank fell 8%, while Punjab National Bank lost 7.51%, Bank of India 4%, Axis Bank 2.66% and State Bank dropped 2.75%.
Smaller PSU banking stocks that fell in trade were Oriental Bank of Commerce, IDBI Bank, UCO Bank, Dena Bank and Vijaya Bank also lost sharply in trade.
Apart from the banking sector, shares from the real estate and capital goods sector fell sharply. Real estate sector stocks that saw heavy losses were DLF, which shed 11%, while Oberoi Realty and Unitech also plunged sharply.
Infrastructure stocks also fell heavily on the RBI decision. Notable losers from the space were Bharat Heavy Electricals, Larsen and Toubro, Punj Lloyd and Thermax.
FMCG stocks were also not spared in the carnage with notable losers from the space being Hindustan Unilever. The stock had rallied substantially in trade on Thursday.
Notable gainers from the Nifty in trade were Wipro, Sun Pharma and Gas Authority of India.
Meanwhile, markets across the globe continued to rally, despite Thursday's sharp gains. The German DAX, the French CAC and the UK's FTSE all were trading higher when Indian markets closed.