The Sensex and the Nifty reached an intra-day low of 19,383 levels and 5,861 mark, respectively.
On the global front, European stocks advanced to a four-and-a-half-year high as the region's policy makers gathered for a two- day summit in Brussels.
Assicurazioni Generali SpA rallied the most since May 2010 after Italy's biggest insurer reported increased operating profit.
HeidelbergCement AG soared to the highest since 2008 as debt declined more than estimated.
Deutsche Lufthansa AG climbed 3.7 per cent as Europe's second-largest airline agreed to buy aircraft from Airbus SAS.
The Nikkei share average closed at a fresh 4-1/2-year high above the 12,500-mark on Friday on growing expectations the central bank will ease monetary policy aggressively under its new leadership.
Japan's parliament approved Haruhiko Kuroda as the Bank of Japan's next governor and Kikuo Iwata and Hiroshi Nakaso to serve as the BOJ's two deputy governors.
Back home, BSE Realty index crumbled by nearly 3% followed by counters like Banks, Oil & Gas, Auto, Metal, Capital Goods, FMCG and PSU, all declining between 1-2%.
However, BSE Consumer Durable index surged by nearly 3%.
Private banking majors ICICI Bank and HDFC Bank were down 1-4% on profit taking at higher levels after gains in late trades on Thursday.
ICICI Bank was the top Sensex loser, down nearly 4%
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