Markets extended losses as selling intensified in banking and oil and gas counters. At 10.30am, the Sensex lost 105 points at 17,174 while the Nifty slipped 35 points at 5,207.
In the broader markets, the midacp and ten smallcap indices slipped 0.3% each but outperformed the Sensex which lost 0.6%.
All the sectoral indices slipped into the negative. Bankex, Realty, Oil & Gas were the top losers, down 1% each.
Bajaj Auto, TCS and Jindal Steel up 1-2% were the top gainers.
On the losing side were Dr Reddys Lab, Sterlite, BHEL, Hero MotoCorp, Tata Power, Infosys, Wipro and L&T were the notable losers.
Among other stocks, Tube Investments of India has soared 10% to Rs 171, also its lifetime high on the Bombay Stock Exchange on back of huge volumes.
The market breadth was negative. 1176 stocks declined while 965 stocks advanced.
Markets opened flat tracking mixed global cues. The BSE benchmark index was down 38 points at 17,241 and the Nifty lost 14 points at 5,228.
The broader markets were flat with a positive bias.
The rupee fell tracking weaker regional currencies, as the euro fell against the dollar undermined by worries about Spain's fiscal woes and recent falls in shorter-term euro zone interest rates. The rupee was at 55.14 to the dollar versus its last close of 55.12/13.
In the international markets, US stocks rose on Thursday for a third straight day. The Dow Jones industrial average and the Standard & Poor's 500 Index gained 0.3% each.
However, Asian shares were mixed on Friday. Japan's Nikkei and Shanghai Composite were down 0.3% in early trading while Hang Seng was up 0.2%.
Back home, the Nifty is likely to seek support around 5,235 – 5,225, technical analysts say.
Among the sectoral indices, Bankex, Oil & Gas, Realty, Helath Care and IT down 0.3-0.6% were the top sectoral losers. On the other hand, FMCG was up nearly 0.3% followed by PSU and Auto indices gaining 0.1-0.2%
Shares of power equipment makers such as Bharat Heavy Electricals, Larsen and Toubro, Crompton Greaves, BGR Energy, Alstom India and Thermax were up 1-2% after the cabinet cleared new duty structure for import of power equipment.
Dr Reddys down over 1% after reporting a disappointing quarterly numbers was the top loser among the Sensex. Sterlite, Tata Power,Infosys, Reliance Industries and ICICI Bank down 0.8-1% were the other notable losers.
Among the major gainers were Maruti Suzuki up 1.2% along with TCS, Bajaj Auto, Coal India and SBI up 0.6-1%
Among other stocks, Tata Communications rallied over 5% at Rs 259 after the cabinet approved spinning off surplus land held by the company into a special purpose vehicle majority owned by the state.
The market breadth was positive. 529 stocks advanced while 366 stocks declined.