The Sensex was trading lower by 109 points, while the Nifty was down 34 points in early trade. Among the Nifty losers in trade were Jaiprakash Associates, Hindalco, Jindal Steel and Grasim.
Banking stocks which had been holding nicely in the last few days gave up gains and were trading mostly lower. Shares in ICICI Bank, Axis Bank, Yes Bank, Canara Bank and Bank of Baroda lost ground.
Infosys, which fell as much as 8.5 per cent on Thursday, following poor management guidance, recovered some lost ground. The stock was up 0.19 per cent.
Shares in Crompton Greaves were trading higher by 2.5 per cent after reports that Gautam Thapar wanted to sell his stake in the company.
Shares of Astra Zeneca were once again in the limelight on reports that the board will meet on March 15 to decide on delisting the company's shares from the stock exchanges.
Coal India was trading higher despite reports of an ongoing strike by officers at the company.
Mid cap stocks also saw some selling pressure in trade with notable losers being IFCI, Karnataka Bank and Voltas.
Sun Pharma which had fallen sharply following a US FDA import alert for one of its plants lost another 3 per cent in trade.
Meanwhile, markets across Asia lost heavy ground with notable losers being the Japanese Nikkei and the Hong Kong's Hang Sang.