The 30-share Sensex ended at 19,485 down 96 points or 0.49% and the 50-share Nifty ended at 5,904 down by 35 points or 0.59%. The Sensex and the Nifty reached an intra-day low of 19,415 levels and 5,884 mark, respectively.
On the global front, Japan's Nikkei share average dropped on Friday to mark its first weekly loss in 13 weeks as sentiment was dented by gloomy comments from the ECB president on Europe's outlook, while Sony Corp tripped up on disappointing quarterly results.
The Nikkei fell 1.8% to 11,153.16, snapping its longest weekly winning streak in 54 years by ending 0.3% down on the week. The benchmark also pulled further away from a 33-month high of 11,498.42 struck on Wednesday.
The euro hovered near a two-week low and European shares rose on Friday after the European Central Bank rekindled expectations that it could again take the knife to interest rates.
Back home, BSE Metal index slumped by almost 2% followed by counters like PSU, Realty, Auto, Oil & Gas, Healthcare, FMCG and Banks, all declining by 1% each. However, BSE IT, TECk, Capital Goods indices gained between 0.5-1%.
Oil & Gas majors like ONGC and RIL dipped between 1-2%. Banking shares like SBI and ICICI Bank dropped between 1-2%.
Metal shares like Sterlite, Hindal, JSPL and Tata Steel plunged between 1-3%.
Aditya Birla’s flagship company -- Hindalco Industries -- has reported a drop in its net profit for the third quarter ended December 31, 2012. Its standalone profit stood at Rs 434 crore as against Rs 451 crore in the same quarter of last fiscal. The stock slumped by almost 3%.
Pharmaceutical major Cipla extended Thursday's losses triggered by Managing Director Dr. Y K Hamied announcing his resignation at the time of the announcement of the company's Q3 December 2012. Cipla was the top Sensex loser, down over 3%. Dr Reddy’s Lab slipped by nearly 2%.
Auto majors like Maruti Suzuki, Hero Moto, M&M and Bajaj Auto fell between 1-2%.
Mahindra & Mahindra Ltd, the country's biggest utility vehicle manufacturer, posted a 26% rise in profit for the three months to end-December but lagged street estimates, as a slide in operating margin offsets strong SUV sales growth.
Software shares gained tracking weakness in the Indian rupee. The rupee today depreciated by 22 paise to 53.44 against the dollar. TCS was the top Sensex gainer, up nearly 3%. Wipro gained by 2%.
Capital Goods majors ended higher on renewed buying. BHEL and L&T surged by 1% each.
Other notable gainers include HDFC Bank, Bharti Airtel, Tata Steel, Sun Pharma and Tata Motors.
Broader markets underperformed the benchmark indices. BSE Midcap and Smallcap indices slumped by almost 1%.
The overall market breadth in BSE ended weak as 1,397 stocks are declining while 763 are advancing.
Elantas Beck was locked in lower circuit of 20% at Rs 829, also its 52-week low on BSE, after its German promoter plans to cut stake in the company from the current 88.55% to comply with SEBI norms on minimum public share holding requirements.
Ambuja Cements slipped over 5% after company reported lower-than-expected earnings for the October-December quarter.
New Delhi Television (NDTV) was locked in upper circuit of 10% at Rs 69.45 after reporting a consolidated net profit of Rs 14.87 crore for the third quarter ended December 31, 2012 (Q3) due to lower selling and administration cost.
Hotel Leala Ventures ended lower by 4% on reports that Chittarath Poovakkatt Krishnan Nair, widely known as ‘Captain Nair’ for his army background, has decided to call it a day as chairman of Hotel Leela Venture.
Shasun Pharma tanked nearly 13% to Rs 88 after the company reported 67% fall in its net profit which came in at Rs 8.2 crore.
Venus Remedies gained over 8% after reporting a robust 56% year-on-year (yoy) jump in net profit at Rs 16.06 crore for the third quarter ended December 31, 2012.
Indiabulls Financial Services dipped nearly 5% to Rs 284 after the company said that it plans to raise upto Rs 450 crore via share sale.