Besides, fresh weakness in the rupee had negative impact.

The 30-share barometer, which had lost 319 points in the past two sessions, tanked 274.28 points, or 1.07 percent, to 25,314.73.

All the sectoral indices, led by banking, PSU and oil and gas were trading in negative zone with losses up to 1.63 percent.

Similarly, the National Stock Exchange index Nifty dipped below the 7,600-mark by falling 83.35 points, or 1.09 percent, to 7,565.90.

Brokers said a subdued trend in Asian trade on overnight losses in US markets after geopolitical tensions worsened in Iraq and Russia, dampened the trading sentiments here.

Meanwhile, the rupee fell sharply by 38 paise to Rs 61.60 against US dollar in morning trade on Friday.

Among other Asian markets, Japan's Nikkei tumbled three percent, while Hong Kong's Hang Seng shed 0.33 percent in morning trade.

US Dow Jones Industrial Average ended 0.46 percent down in Thursday's trade.

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