Domestic equity markets witnessed massive selling pressure on Friday as S&P BSE Sensex fell 1,700 points to 49,273 levels, the 50-stock NSE Nifty also fell below 14,700.
Heavy selling pressure was witnessed in banking and finance stocks.
IndusInd Bank was the top loser in the Sensex pack, shedding around 3 per cent, followed by ICICI Bank, Axis Bank, HDFC, M&M, SBI, HDFC Bank, Reliance Industries and Tech Mahindra.
Stocks markets said to be reacting to rising bond yields, fresh tensions between US and Iran and surging coronavirus cases domestically.
According exchange data Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 188.08 crore on Thursday.
"Recent rise in bond yields globally and concerns with regard to higher commodity prices weighed on investors' sentiments as these two elements reduce the future value of cash flows and earnings," said Binod Modi Head-Strategy at Reliance Securities.
The equity markets are also keeping an eye on the coming GDP numbers for the third (October-December) quarter of the current financial year, scheduled to be released later in the day.