The BSE Sensex, which was trading flattish earlier, shed 354.36 points, or 0.44 per cent, to 80,392.42. Nifty traded at 24,264, down 150.40 points or 0.62 per cent. India VIX soared 10.16 per cent to 21 level.

Trading was halted for an hour at the Pakistan Stock Exchange after the benchmark index plunged 6.3% intraday, amid escalating tensions between India and Pakistan, as per a Reuters report.

Indian shares fell on Thursday in their most volatile session in a month after the country said it "neutralised" attempts by Pakistan to "engage" several military targets in its northern and western regions.