Asian markets were mixed, and in the domestic market there has been a cautionary note owing to the GST implementation on July 1.
The subdued interest resulted in heavy selling in sectors such as capital goods, oil and gas, banking and automobile stocks.
The Nifty ended lower for a fourth straight session on Friday, its longest losing streak since mid-April, as investors booked profits in financials such as State Bank of India and Kotak Mahindra Bank Ltd.
The index closed down 0.57 percent at 9,574.95, its lowest close since May 25. It fell 0.14 percent for the week.
The benchmark BSE Sensex was 0.49 percent lower at 31,138.21 but posted a 0.26 percent gain for the week.
Sify Editors @ 12:25 PM
Sensex falls on profit-taking; financial stocks down
Indian shares fell on Friday, with the NSE index hitting a one-week low, as investors booked profits in financials such as State Bank of India and auto makers such as Maruti Suzuki India Ltd.
Still, the indexes were headed for small weekly gains on hopes the central bank will cut interest rates after minutes from a monetary policy committee meeting earlier this month showed one member acknowledging that inflation had eased.
Caution is however likely to prevail in the near term as India gears up to unveil a nationwide goods and services tax on July 1, while monitoring global factors such as falling crude prices.
Markets will be closed on Monday for a public holiday.
"There will be some consolidation in the market once it has run up so sharply," said Shibani Kurian, senior vice president and head of equity research at Kotak Mutual Fund.
The broader NSE Nifty was down 0.4 percent at 9,588.60 as of 0600 GMT after hitting its lowest since June 16. The index was up marginally on week.
Sify Editors @ 10:50 AM
Fortis Healthcare falls; Integrated Healthcare pulls out of deal
Shares of Fortis Healthcare Ltd fell by as much as 10.13% pct at Rs 178. It was its biggest intraday percentage loss in over seven months.
The fall came after Malaysia's Integrated Healthcare Holdings said it is not engaged in any negotiations in India currently, according to a regulatory filing to Singapore, Malaysian stock exchanges on Thursday.
The media had earlier reported that Integrated Healthcare was eyeing a controlling stake in Fortis Healthcare, SRL Diagnostics in a deal which valued the two companies at nearly $2.9 bln
Fortis Healthcare's stock had gained 22.8% in last one year, before today's steep fall.
Sify Editors @ 9:30 AM
The Sensex in the red
The BSE Sensex, which opened at 31,352.57 points, was trading at 31,302.74 points in the early session, higher 12 points or 0.04 per cent from Thursday's close at 31,290.74 points.
The Sensex touched a high of 31,365.39 points and a low of 31,296.01 points in the trade so far.