The BSE Sensex falls 0.35 percent while the Nifty is also down 0.49 percent. Traders say rise of about 6.4 percent in benchmark index in the last two weeks as of Thursday's close, shows the market has already discounted a rate cut and current levels are widely used to lighten up positions ahead of the RBI policy on May 3.
ICICI Bank Ltd falls 1.4 percent ahead of its Jan-March earnings later in the day.
Consumer goods stocks ITC Ltd and Hindustan Unilever Ltd fall 0.6 percent and 1.2 percent, respectively, on concerns about valuations and volume growth, dealers say.
Jindal Steel & Power Ltd shares fall 1.4 percent after it said on Thursday its March-quarter consolidated net profit fell 34.88 percent to 7.60 billion rupees.
However, shares in Idea Cellular Ltd gain 7.8 percent after Jan-March earnings beat estimates on Thursday, due to strong customer additions and a court decision that removed some smaller competitors from the market.