On the domestic equity market front, the 30-share BSE Sensex dropped 953.70 points or 1.64 per cent to end at 57,145.22, while the broader NSE Nifty fell 311.05 points or 1.8 per cent to 17,016.30.
I was having a conversation with a friend who had got some money recently, and wanted to invest that. He was worried about inflation, and did not want to invest into his dental practice.
Sensex shed more than 1,000 points to close at 58,100, while the broader Nifty tanked 300 points to end the week at 17,327.
This is the third day of decline for the equity market and the BSE benchmark has fallen by 1,620.82 points or 2.71 per cent during this time.
The 30-share BSE benchmark had declined 337.06 points or 0.57 per cent to settle at 59,119.72 on Thursday. The Nifty dipped 88.55 points or 0.50 per cent to end at 17,629.80.
At the interbank foreign exchange market, the domestic currency opened at 79.81 per dollar. It hovered in a range of 79.79 to 80.00 during the session.
The global equity market, including India, will be eagerly watching the US Federal Reserve meet that will take place on September 20-21 for future directions.
This comes following a net investment of Rs 51,200 crore in August and nearly Rs 5,000 crore in July, data with depositories showed.
Fall comes as IMF and World Bank warn about recession risks and aggressive policy tightening by central banks
Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 1,270.68 crore, as per exchange data.
Inflation number to be announced on Monday could play spoilsports as it is believed that retail inflation in August might have edged higher to 6.9% against 6.71% in July.
The moderate inflows into equity funds were compensated by strong inflows into debt funds, which received a net of Rs 49,000 crore against Rs 4,930 crore in July.
The rally, mostly stock specific and led by heavyweights such as Reliance Industries and ICICI Bank, came even as most Asian bourses closed in the red due to multiple negative cues.
This is the highest investment made by them so far in the current year.
The ripple effects of this could be seen on Monday in Indian markets, which had a topsy turvy five sessions this week.
It finally settled flat at 79.84 against the US dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.20 per cent to 108.38.
During the day, it slumped 941.04 points or 1.57 per cent to 58,705.11. The broader NSE Nifty declined 267.75 points or 1.51 per cent to finish at 17,490.70.
Indian equity markets, which have been driven by strong FII inflows and good quarterly numbers, could see consolidation this week in absence of any major triggers.
The BSE benchmark index had ended 37.87 points or 0.06 per cent higher at 60,298 on Thursday. The Nifty gained 12.25 points or 0.07 per cent to settle at 17,956.50.
A largely positive trend in global equities and foreign capital inflows also supported the domestic equity markets, traders said. However, IT and healthcare stocks remained a drag on the indices.