Industry heavyweights Reliance Industries (RIL), HDFC Bank, SBI and Maruti contributed the most to the index's losses. Out of 30 components of the index, only 10 scrips ended in the green and rest in the red.
The broader Nifty50 index of the National Stock Exchange (NSE) ended below the crucial 11,500 level at 11,457, down 64 points or 0.56 per cent.
Market breadth remained in favour of declines as out of 2,859 companies traded on BSE, 1,697 declined and 1,017 advanced while 145 stocks remianed unchanged.
In the broader market, the S&P BSE Midcap index fell 84 points or 0.59 per cent to settle at 15,077, while the S&P BSE SmallCap index slipped 66 points or 0.44 per cent to close at 14,759.
Sectorally, barring realty stocks, all the indices declined. PSU banks bled the most, followed by media and auto stocks. The Nifty PSU Bank shed 2 per cent to end at 3,124 while the Nifty Auto index lost 1.28 per cent to close at 8,337.
Meanwhile, Fitch Ratings on Friday cut India's economic growth forecast for the next financial year starting April 1, to 6.8 per cent from its previous estimate of 7 per cent, on weaker than expected momentum in the economy.
ITC reclaimed the top spot in the list of India's most-valued fast moving consumer goods (FMCG) company in terms of market capitalistaion (market-cap) after a gap of five months by surpassing Hindustan Unilever (HUL). The stock, eventually, ended at Rs 298 apiece, down 10 per cent.
Shares of Maruti ended nearly 2 per cent lower at Rs 6,558 on BSE. The stock has fallen over 7 per cent in the past four trading days, after the emergence of a report suggesting the company cut production due to lower demand.
Aviation stocks rallied during the trade. SpiceJet ended 7 per cent higher at Rs 98 apiece.