Benchmark indices fell sharply in trade as US Bond yields surged, dragging Asian and emerging stocks along with it.

Banking stocks dropped despite hopes that the Reserve Bank of India would cut interest rates in its policy meet next week. Kotak Mahindra Bank was the top loser from the space losing as much as 3 per cent. IndusInd Bank and Axis Bank were the other stocks from the private sector banking space that lost ground.

Among non index stocks, Jindal Drilling lost as much as 7 per cent, after an arbitration award of USD 31.76 million was passed against the company.

Tata Motors was the biggest loser from the Nifty stocks, with the shares ending almost 3 per cent lower. Software stocks ended the day lower, following a sharp sell-off on the tech heavy NASDAQ on Thursday.

Meanwhile, gold prices continued to slump and hit a new six month low. Gold for 22 karats and 24 karats, along with silver prices fell sharply. Check gold rates here

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