Indian shares slumped more than a percent on Friday as global trade war worries continued to weigh on investor's risk appetite.
Mirroring the concerns, Asian shares declined following U.S. President Donald Trump's tariffs on steel and aluminum imports.
Reports of the U.S. investigation into the Trump Organization also doused sentiment.
The New York Times on Wednesday reported that U.S. Special Counsel Robert Mueller had issued a subpoena for documents related to U.S. President Donald Trump's businesses.
This follows the sudden departure of U.S. Secretary of State Rex Tillerson and economic adviser Gary Cohn from the President Donald Trump administration.
On Friday, the benchmark Sensex ended down 509 points, or 1.51 percent, at 33,176 and the Nifty fell 165 points, or 1.59 percent, at 10,195.
The Indian rupee closed little changed against the U.S. dollar.
The partially convertible rupee ended at 64.94 on Friday, down 0.01 percent from its previous close of 64.93.
So far this year, the rupee weakened 1.7 percent, while foreign investors have bought $1.4 billion in equity and $21 million in debt market.
Traders are now looking forward to Wednesday's FOMC meeting for guidance on the Federal Reserve's rate-hike path.
Here's what to watch in the coming days.
FOMC
The U.S. Federal Reserve's first meeting with new head Jerome Powell at the helm takes place on Tuesday and Wednesday.
Strengthening labor market and a steady increase in price pressures could pave the way for the Federal Reserve to raise interest rates in upcoming meeting.
The CME FedWatch tool currently places the likelihood of a 25 basis point hike at 91.6 percent, one fully worked in for the markets.
The U.S. central bank has forecast three rate increases for this year, but there are also expectations that it will raise its projection to four hikes at the meeting.
Economic indicators
Japan's Nikkei flash Manufacturing Purchasing Managers' Index (PMI) data for the month of March is scheduled on Thursday.
On the same day, the Eurozone preliminary Markit PMI Composite data for March is also slated to release. A meeting of European Council is scheduled on Friday.
Sandhar Technologies IPO
Sandhar Technologies, a supplier to Hero MotoCorp for sheet metal components, is hitting the primary market with an initial public offer (IPO) next week. The issue opens on Monday and closes on Wednesday. The price band for the issue is Rs 327 to Rs 332 per share.
