Global markets tumbled after the European Central Bank's (ECB) stimulus left investors disappointed with many traders being caught on the wrong foot.
While investors expected the ECB to buy more of government bonds each month, the central bank only extended its asset buying by 6 months.
This left investors disappointed and European and US markets saw a sell-off on Thursday. Asian markets saw deep falls on Friday and ended lower.
The Sensex ended the day with losses of 248 points, while the Nifty fell 82 points in trade. Sun Pharma was the big gainer in a falling market, after the company received a US FDA approval for one of its drugs. The stock surged a huge 4 per cent in trade.
Dena Bank, however, saw gains after the board approved to raise equity capital by diluting government stake up to 52 percent.
Zee Entertainment was the biggest loser from the Nifty space, while Just Dial from the Mid Cap space saw a loss of a huge 5 per cent.
Meanwhile, markets across Europe continued to trade in the red with the German DAX, French CAC and the UK's FTSE among the big losers in trade.