Indian stock markets remained weak owing to Dubai debt crisis worries on Friday.

Huge selling pressure was witnessed across funds as well as sectors including real estate, banking and metals.

Sensex lost more than 500 points during the opening trade in reaction to Dubai's debt postponement that hurt investor response throughout the world and recorded a steep fall later hitting a low of 16,210.44.

But, the stock index shed the majority of its losses and made recovery from day's low to lastly end the day on a feeble note.

Dubai accumulated $80 billion of arrears by growing in banking, realty and transportation before credit markets seized up during 2008. S&P had placed the valuation of four Dubai-based banking institutions on negative stance because of their exposure to Dubai World.

The BSE Midcap index fell 1.35%, while BSE Smallcap shed 2.14% on Friday.

Finally, the Sensex marked its closure at 16,632.01, down 222.92 points, after hitting an intraday high of 16,718.80 and an intraday low of 16,210.44.

The Nifty declined 63.80 points to close the day at 4,941.75. Nifty hit an intraday high of 5,005.05 and an intraday low of 4,806.70.

The top gainers in the Sensex pack included Bharti Airtel, Rel Capital, Hero Honda, Rel Infra, Grasim Ind and Tata Steel.

In contrast, the top loser's in the 30-share index were JP Asso, L&T, Infosys, TCS, Sterlite Ind and ITC.

While talking about the Dubai disaster, Mr. Ashok Jainani, vice president Head Research, Khandwala Securities stated that the reaction of bourses to debt rescheduling sought by Dubai World does not seem warranted.

"Worldwide market capitalization loss is many times over the entire debt, which is being sought to be rescheduled. We do not believe there is any default cascading to other sectors of the Indian economy as is being made out by mainline media."

"Market was looking for a reason to pause and rest. This incidence has just provided that. We suggest adding long positions in growth stocks in this panic situation," Mr. Jainani added.