The Sensex ended 1,687 points down, wiping away Rs 7.45 lakh crore in investor wealth.
At home, the Sensex fell 1,687 points to 57,107, while the Nifty fell 509 points to 17,026. In the week's final trading session, investors lost Rs 7.45 lakh crore.
Worries about just a fast-spreading coronavirus variant in South Africa roiled investor sentiment today, as Indian equities fell in lockstep with global markets. The European Union's proposal to halt air travel from Southern Africa triggered a global market bloodbath.
The market capitalization of BSE-listed companies fell to Rs 258.21 lakh crore from Rs 265.66 lakh crore the previous session.
"Stock markets nosedived throughout the globe on Friday, aiming for their largest weekly dip in almost two months, as a new coronavirus type aroused fears," said Deepak Jasani, head of retail research at HDFC Securities.
The B.1.1529 strain, which has been found to include up to 30 mutations, is a new, highly transmissible variety of COVID-19 that was first discovered in South Africa and then in Hong Kong. Investors flocked to bonds, the yen, and the Swiss franc as a result of the panic.
One point of view is that the reaction appears to be outsized because of the poor liquidity levels in Asia trade as a result of the US holiday."
The biggest Sensex losers were IndusInd Bank, Maruti, Tata Steel, NTPC, and Bajaj Finance, which fell up to 6.01 percent. Dr Reddy's, Nestle India, and Asian Paints, on the other hand, were the only Sensex gainers, increasing up to 3.35 percent. TCS's stock remained unchanged at Rs 3,445.
The BSE mid-cap and small-cap indices both dropped 828 points and 751 points, respectively.
The market breadth was negative, with 1,067 equities ending the day higher and 2244 stocks ending the day down. A total of 104 shares remained unchanged.
Kotak Securities' Head of Equity Research (Retail), Shrikant Chouhan, stated, "Lockdowns and travel bans are being imposed as a result of the new Covid version. Apart from the concerns about Covid, inflation is a concern for governments all around the world. This week, FIIs have been net sellers. In the short term, the impact of new covid variants, inflation data, and Central Bank actions will be actively monitored by equity markets."
Metal, capital goods, consumer durables, banking, and auto stocks led the sectors losses today.
The BSE consumer durables index dropped 1,522 points to 41,920, while the BSE capital goods index dropped 1011 points to 27,058, the auto index down 1,087 points to 24,330, the metal index dropped 1,058 points to 18,703, and the BSE bankex index dropped 1,512 points to 41,117.
The BSE healthcare index, which rose 298 points to 25,626 points, was the only one of the 19 BSE sectors indices to gain ground.
In a positive trend in global markets, the Indian market closed higher on Thursday, boosted by advances in index heavyweight Reliance Industries. The Sensex finished 454.10 points higher at 58,795 points, while the Nifty gained 121 points to 17,536 points. The top Sensex gainer was Reliance Industries, which rose more than 6%, followed by ITC, Infosys, Tech Mahindra, Titan, Bharti Airtel, and PowerGrid.
Foreign institutional investors (FIIs) sold shares worth Rs 2,300 crore on November 25, while domestic institutional investors (DIIs) acquired shares worth Rs 1,367 crore, according to provisional data available on the NSE.
At the start of the day, London's FTSE sank by an unusually large margin of 3.3 percent, while Tokyo lost 2.5 percent. Shanghai, Frankfurt, and Hong Kong also saw a drop in business.
The DAX in Frankfurt down 3.3 percent to 15,391, while the CAC in Paris fell 4% to 6,789.13.
The Shanghai Composite Index down 0.6 percent to 3,564.09, while the Nikkei 225 in Tokyo fell 0.6 percent to 28,751.62. Hong Kong's Hang Seng Index fell 2.7 percent to 24,080.52.
The Kospi in Seoul slid 1.5 percent to 2,936.44, while the S&P-ASX 200 in Sydney dropped 1.7 percent to 7,279.30.