The broader NSE Nifty closed 1.25 points, or 0.01 per cent down at 10,564.05.
Reliance Industries, Infosys and Tata Motors were the top contributors
The fall came on the back of a massive selloff in NBFCs, led by DHFL which skidded over 50 per cent on fears of a liquidity crisis.
Buying activity was so strong that all the sectoral indices except IT and technology ended in the green, rising by up to 3 per cent
Coal India fell the most by 2.58 per cent among Sensex scrips, dragging the index into the negative zone.
The group will be in a better position to now scale up most of its segments irrespective of government policy, but the bad news others add is its growing debt.
The broader NSE Nifty dipped below the 10,200-mark to hit a low of 10,180.25 before ending at 10,195.15, down by 165 points, or 1.59 per cent.
The broader Nifty ended on top of 9,800 again.
Top 5 losers include Infosys, TCS, ITC, M&M and HUL.
Yes Bank was the top gainer in the Sensex pack, surging 3.76 per cent, followed by SBI at 3.18 per cent.
Investors booked profits in recent gainers
BSE Midcap and BSE Smallcap indices hit their fresh lifetime highs for the second day in a row
The NSE Nifty too ended 58.60 points, or 0.54 per cent, higher at 10,967.30 after shuttling between 10,985.15 and 10,928 during the session.
The 50-share NSE Nifty too closed down 168.30 points, or 1.58 per cent, at 10,498.25 -- a level last seen on January 3 when it closed at 10,443.20.
Small- and mid-cap stocks continued facing selling pressure due to stretched valuations.
This is its biggest single session fall since August 24, 2015, when it had lost 1,624.51 points.
Escalating his attack against Bharatiya Janata Party's prime ministerial candidate Narendra Modi over his development claims, Aam Aadmi Party leader Arvind Kejriwal on Thursday said he is the "vikas purush" (development man) only for industrialists.
Sun Pharma was the biggest gainer in the Sensex pack, advancing 1.79 per cent.
The Rs 63,000-cr Mumbai-Ahmedabad high-speed corridor and Rs 14,000-cr CSTM-Panvel suburban corridor are two of the largest projects.
Of the 30-share Sensex pack, 22 ended with losses while NTPC ended flat at Rs 127.30.
The wider NSE Nifty touched a low of 10,652.40 before finishing at 10,671.40, showing a loss of 97.75 points, or 0.91 per cent.
The broader NSE Nifty index too finished lower by 4.80 points, or 0.05 per cent, at 10,632.20.
Coal India was the biggest gainer on both Sensex and Nifty
The NSE Nifty cracked below the 10,800-mark to hit a low of 10,753.05 intra-day, before closing at 10,762.45 with a loss of 59.40 points, or 0.55 per cent.
The NSE Nifty, which dipped below the key 10,800-mark to touch a low of 10,755.40, bounced back on late buying to close at 10,817.70, up 9.65 points, or 0.09 per cent.
Geo-political concerns over death of a Saudi journalist, Brexit and likely breach in Italy's budget also kept investors cautious.
Broader gains were capped as investors awaited corporate results from major firms
The session was marked by volatility and stock-specific action, even as the overall sentiment remains risk-averse, brokers said.
The broader NSE Nifty, after cracking below the key 10,300-mark, touched a low of 10,211.25, before finally ending 134.75 points, or 1.30 per cent, down at 10,226.55.
FMCG major ITC and private banking major ICICI Bank were the top Sensex losers
IndusInd Bank was down nearly 1% even after it reported a 21% rise in its fourth-quarter profit
Adani Enterprises, the flagship company of the Adani Group, reported a profit after tax of Rs 557 crore for the first quarter ended June 30, 2014 on the back of a 43 per cent jump in revenue.
The Nifty rose 176.50 points, or 1.74 per cent, during the week.
The broader NSE Nifty too reclaimed the key 11,500-mark. It touched a high of 11,562.25, before finally settling at 11,536.90, showing a gain of 59.95 points, or 0.52 per cent.
A strong set of industrial output numbers for January provided the perfect backdrop to reap more dividends, with the IIP having expanded 2.7 per cent year-on-year.
The Sensex has now lost 878.32 points in six sessions -- its longest string of losses in six months.
Women of the family rush to become directors of firms to meet Sebi deadline.
Persistent capital inflows by domestic institutional investors and retail investors kept the markets in fine nick
The S&P BSE Sensex dropped 207 points to end at 25,230.
In the longest losing streak of 2017, the BSE Sensex has lost 1,270 points, or 3.91 per cent. It fell to a three-month low of 31,154.03 on Wednesday.