The Sensex was last trading 142 points lower, while the Nifty gained 44 points in trade. Among the top losers in trade were banking stocks with ICICI Bank slumping 2 per cent, while other notable losers from the banking space were Axis Bank, IndusInd Bank and Yes Bank.
PSU banking majors also saw their shares dropping sharply with notable losers from the space being Bank of India, Canara Bank and Union Bank of India.
Other rate sensitives also saw a drop in their share prices with notable losers being those from the auto and real estate space.
Tata Motors which lost substantial ground on Thursday was trading higher by more then 1 per cent in trade.
Software stocks were holding firm in an otherwise falling market, with notable gainers being HCL Tech, Infosys and Tata Consultancy Services.
Mid cap stocks also did not have a good day in trade in line with the broad markets. Among the losers were MRF, Syndicate Bank and Voltas.
Cadila Healthcare shares were marginally lower despite the company and Warner Chilcott agree to settle Asacol patent suit.
Meanwhile, Asian markets were trading mixed despite weak overseas closings in the US. While the Jakarta Composite and the Korean Composite declined, the Japanese Nikkei and the Shanghai Composite rallied.