The fall started from 1.30 pm onwards and saw benchmark indices lose 2 per cent and more on Friday on reports of 10 cases of terror financing in the stock markets in the last three years.
“The market had just factored in RBI’s neutral stand on interest rates when this news took the benchmark indices down,” said a day trader on Dalal Street.
“Opposition protests over the removal of Home Minister, Mr P. Chidambaram, also added fuel to this.”
The NSE index Nifty closed at 4,651.6, down two per cent (95 points) while the BSE index Nifty shed 2.28 per cent to close at 15,475.75, down 361 points.
Volatility was up three per cent and the India Vix closed at 29.69.
Gail, HCL Tech, Dr Reddy’s, Grasim and BPCL were the top five Nifty gainers.