Top lender State Bank of India bucked the trend to rise 2.3 per cent to 1,352.15 rupees on buying by domestic funds.

Leading listed firm Reliance Industries dropped 7.4 per cent to 1,527 rupees, its lowest close in 18 months, on foreign selling, traders said.

Foreign funds have sold a net of $10.2 billion in Indian stocks in 2008, pushing the BSE index down 48 per cent. In comparison, they had ploughed in a record $17.4 billion in 2007, lifting the benchmark 47 per cent.

Engineering and construction leader Larsen & Toubro, dropped 8 per cent to 889.15 rupees, its weakest close since May 2007, after the weak industrial output data.

The 50-share NSE index ended down 6.65 per cent at 3,279.95.

Elsewhere in the region, Karachi's 100-share index was little changed at 9,181.35 on extremely thin volume. The Karachi Stock Exchange board will meet on Monday to review how long to keep an artificial floor under the share market and consider establishing an exit mechanism for foreign investors.

Colombo's All-share index closed down 4.39 per cent at 1,924.69.

The world equity index fell to a five-year trough and equity trading in Russia, Iceland, Austria, Ukraine and Indonesia were halted while nearly half of Milan stocks were suspended for excessive losses just hours before finance chiefs of seven rich nations meet in Washington.

Wall St slides on global rout, bank woes

New York, October 10:

US stocks slumped at the open on Friday, with the benchmark S&P 500 falling below the 900 mark, as fears that tighter credit may send the global economy into recession slashed the appetite for risk.

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