The Sensex and the Nifty dropped sharply in trade, but recovered a little in the last 15 minutes of trade, even as Infosys slipped a huge 6 per cent.
Banking shares came in for huge selling pressure with private sector banking stocks like Indusind Bank and Yes Bank seeing sharp declines.
PSU Banking stocks like Oriental Bank of Commerce and Bank of Baroda saw huge selling pressure.
IT stocks had a mixed day in trade despite weakish numbers from IT major Infosys. TCS held with smart gains, while HCL Tech too was higher. Tech Mahindra on the other hand ended the day with losses.
Oil exploration companies were the best performing stocks in trade with Cairn India and ONGC seeing sharp gains. Other Nifty stocks that gained ground were ACC, Grasim and Maruti.
Dealers say there was some buying from domestic institutions which helped to lift sentiments in the last 15 minutes of trade.
Meanwhile, markets across Europe were trading with gains after having fallen on Thursday. Asian markets on the other hand ended the day mixed.