Benchmark indices in India followed global markets, which were sharply lower after reports that Gilead Sciences Inc's experimental coronavirus drug failed its first randomised clinical trial, citing draft documents published accidentally by the World Health Organization.
Sentiments were also adversely impacted after reports that Franklin Templeton Mutual Fund India had shuts 6 debt schemes, owing to Covid 19 impact.
The Sensex was down 412 points, while the Nifty was trading lower by 121 points. Asian markets too were trading lower with the Japanese Nikkei and the Hong Kong's Hang Sang down almost a per cent. The rise in the number of coronavirus cases in India to 23,000 and a big jump of almost 1,683 cases in the last 24 hours also left investors worried.
Banking stocks saw the biggest impact with ICICI Bank plunging 4 per cent, while HDFC Bank lost more than 2 per cent and HDFC fell more than 3 per cent.
IT Stocks like TCS and Infosys, which had seen substantial rally on Thursday gave-up large part of those gains.
Shares in Hindustan Unilever fell marginally after parent Unilever said that its growth in India has been hit by both slowing market and the coronavirus-forced lockdown.
Alembic Pharmaceuticals saw its shares jump 4 per cent, after the company reported a 81 per cent rise in its consolidated net profit