However, losses were limited as information technology stocks advanced, after Cognizant Technologies forecast a pick-up in annual revenue growth, while a strong response to HDFC Bank's $1.6 billion share offering also bolstered sentiment.
The benchmark Sensex closed 31.14 points, or 0.11 per cent, lower at 28,850.97 points, while the broader Nifty fell 12 points, 0.14 percent, to 8,711.70 points.
Oil explorers fell with ONGC down 3.2 per cent and Cairn India closing down 2.7 per cent after oil prices fell on Thursday, extending big losses logged in the previous session.
Lenders also fell, with ICICI Bank down 2.6 per cent, falling for a sixth straight session after its earnings fell short of some analysts' expectations, while Indian Overseas Bank fell 9.8 per cent after its bad loans surged.