The Sensex and Nifty fall 0.3 percent, reversing Thursday's gains after the government came under pressure to roll back a petrol price hike, casting doubt about whether it would take the bolder step of raising other fuel prices.
Oil and Natural Gas Corporation falls 1.6 percent, after surging nearly 6 percent on Thursday, which had marked its biggest single day gain since June 2010.
Thursday's outperformers, ICICI Bank
Stock markets also under pressure after Goldman Sachs and Bank of America cut their GDP growth estimates for India.
Traders are closely watching the rupee and any news on possible diesel, LPG price hikes for further direction.