The European crisis had a domino effect on the Indian bourses yet again with the Sensex shedding over 200 points on Friday.

There was continuous selling by foreign funds which resulted in the Sensex tanking 218.42 points to close the day at 16,769.11. The Nifty lost 72.80 points to end the day at 5,018.05.

In the last one week, the Sensex lost 4.5% while Nifty was down by over 5%.

According to the provisional BSE figures, FIIs sold stocks worth over Rs 1,300 crore on Friday. In May, FIIs had been net sellers to the tune of over Rs 4,200 crore.

Deven Choksey, MD of KR Choksey Securities, said, ?The local currency depreciation has resulted in FIIs pulling out money not only from Indian bourses but also from other emerging markets. We believe that markets are bottoming-out even though volatility is likely to continue for sometime.? Barring Oil & Gas, all sectors on the BSE ended the day on negative terrain with Bankex and Realty being the worst performers.

?The Greece problem is really about just one country, but it will trigger a broad selloff in an effort to reduce risk assets,? said Naoki Fujiwara, a fund manager at Shinkin Asset Management

Co in Tokyo, which oversees about $6 billion. He added,

?Once that settles, the market should rebound.?

The MSCI Asia Pacific Index slid 1.6 % to 117.93 as of 7.16 pm in Tokyo, nearing its lowest level since February 25. The MSCI Asia Pacific Index reduced losses after Japan?s finance minister Naoto Kan said the G7 plans to hold a conference call on Friday to discuss the Greece debt crisis.

Japan?s Nikkei 225 stock average sank 3.1% as the yen strengthened against the euro and the dollar, dimming earnings prospects for Japanese exporters. South Korea?s Kospi was down 2.2%, while Australia?s S&P/ASX 200 Index declined 2%. China?s Shanghai Composite Index lost 1.9%, and Taiwan?s Taiex also fell 0.2%. Hong Kong?s Hang Seng Index retreated 1.1%. Australia?s central bank warned that an escalation of Europe?s debt woes may cause a sharp global economic slowdown.

US equities sank as waves of computerised trading exacerbated a selloff triggered by Europe?s debt crisis, sparking a slide in Asian shares. It briefly erased more than $1 trillion in US market value.

Meanwhile, NSE?s cash segment reported a turnover of over Rs 16,200 crore, gaining 16% over the previous session, while the average daily turnover in the last six months stood at approximately Rs 14,400 crore.

The derivatives segment of NSE?s reported a turnover of over Rs 1.03 lakh crore, up 15.52% compared to Thursday?s figure, while average daily turnover in the last six months stood at approximately Rs 78,500 crore.