Despite a further drop in India's inflation rate, the Indian stock markets continued their downward trend on Friday, with the key Sensex index falling 239.8 points or 2.51%. The markets gave up profits by midday as investors remain wary and lack confidence in the economic system. Sector indices like midcap and smallcap also declined, while healthcare was the only sector to gain. Major losers included Reliance Infra, DLF, and Infosys.