The US stocks continued their fall for the second straight week.
The S&P 500 retreated 1.9 per cent, while the Dow Jones Industrial Average dropped 1.5 per cent.
The domestic markets too tumbled sharply after the Reserve Bank of India raised key interest rates by 25 basis points.
The BSE Sensex tumbled 1.62 per cent and the NSE's S&P CNX Nifty by 1.32 per cent.
Among the American Depository Receipts, Infosys was the biggest loser. The Infy ADR crashed 4.44 per cent at $64.55 against the previous week's close of $67.55.
Information technology counters have been under pressure after the crisis in Japan.
Wipro closed 3.47 per cent lower at $13.09 ($13.56). However, Satyam Computer and Patni Computer finished a tad better.
Banks
Banking majors ended on mixed note. While HDFC Bank finished 0.45 per cent at $155.41 ($154.81), ICICI Bank slipped 0.8 per cent at $44.74 ($45.1).
The earthquake in Japan also took a toll on Tata Motors, whose ADR slide 0.87 per cent at $25.02 ($25.74).
Global sentiment turned weak on apprehension on auto industry following the Japan earthquake.
The weak LME prices appeared to have affected Sterlite Industries, whose ADR tumbled 1.62 per cent at $13.98 ($14.21).