Indian stocks fell on Thursday in a highly volatile day, where the BSE index swung about 545 points, as the stocks mirrored falls in Asia and Europe while better-than-expected earnings from Infosys helped cushion losses.

The BSE Sensex ended down by 81.14 points or 0.33 per cent at 24,772.97, after moving in a range of 25,018.46 and 24,473.22.

The 50-share Nifty also fell 25.6 points or 0.33 per cent to 7,536.80.

Among BSE sectoral indices, capital goods index fell the most by 1.77 per cent, followed by capital goods 1.67 per cent, realty 1.46 per cent and power 1.32 per cent. On the other hand, IT index was up 1.93 per cent, followed by TECk 1.54 per cent, FMCG 0.16 per cent and healthcare 0.02 per cent.

Top five Sensex gainers were Infosys (+4.28%), Lupin (+3.02%), Asian Paints (+2.39%), Dr Reddy's (+0.84%) and Cipla (+0.84%), while the major losers were Axis Bank (-3.9%), Tata Steel (-3.36%), BHEL (-2.81%), Tata Steel (-2.63%) and State Bank of India (-2.56%).

Infosys gained as much as 6.5 per cent after the company raised its full-year revenue guidance and beat analysts' estimates for its consolidated net profit in the third quarter.

Sustained selling by funds amid a weak trend in global markets following overnight sell-off in US markets on renewed jitters about the world’s top economy and broader concerns about global growth dampened the domestic sentiment, brokers said.

Fall in the Indian rupee to its weakest since September 2013 too weighed on the domestic sentiment, they said.

"Looking at yesterday and today's recovery from the lows, my sense is that we are somewhere close to the bottom," said Gaurang Shah, vice-president at Geojit BNP Paribas.

"My advice would be to avoid the small and mid-cap stocks right now because their valuations have run up to a great extent."

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 75.90 crore yesterday, as per provisional data released by the stock exchanges.

European shares fell sharply on Thursday after two sessions of gains, with the sentiment depressed by continued weakness in oil prices - which briefly dipped below $30 - and worries over global economic growth.

In overseas market, Asian shares weakened across the board today, hit by steep losses on Wall Street overnight as a rout in oil price heightened worries about the global economy.

US stocks rang up sharp losses yesterday in a tough day of trading on Wall Street, marked by investors unloading consumer discretionary and healthcare shares. A renewed slump in crude oil prices added to the selling pressure, driving the S&P 500 and the Dow Jones to their lowest levels since September 29, 2015.

Sageraj Bariya of East india Securities said: "Asian equities resumed their New Year tumble, wiping out last session's rebound, in the wake of steep losses on Wall Street and amid a rout in oil and commodities prices, with crude plumbing to 12-year lows. Volatility in oil prices overshadowed better-than-feared trade data out of China that initially lifted sentiment in equities and commodities.China's market is marching towards bear territory and all efforts of its government to stem the fall and restore investor confidence have gone to the winds. China shares have breached their lows from last summer's crash. A Thursday thud is on its way after a winning Wednesday for our markets."

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