The Sensex ended the day lower by 96 points at 25,105 points, while the Nifty ended the day lower by 29 points.
Among the top losers from the Nifty were Mahindra and Mahindra, Tata Power, Sun Pharma and State Bank of India.
Tata Motors also ended the day lower despite reports that the company has announced an investment of 200 million pounds at its Halewood plant in the UK to support introduction of its upcoming SUV Discovery Sport.
Exploration major ONGC, which had dropped 5 per cent in trade on Thursday after crude prices rose sharply, ended the day with losses once again.
Select PSU banking stocks also ended the day lower with Union Bank of India, Oriental Bank of India and Bank of India being among the prominent losers.
Private sector banking stocks on the other hand had a mixed day in trade with Federal Bank and Kotak Mahindra gaining ground, while ICICI Bank ended the day lower.
Shares in government owned IFCI rallied 4 per cent after reports that the company will divest its entire stake in IFCI Financial Services and 2.5 per cent stake in NSE.
Credit rating agency ICRA rallied 11 per cent after leading global rating agency Moody's hiked its stake in the company to 50.06 percent post open offer
Meanwhile, markets across Europe were trading with marginal gains despite worries over tensions in Iraq.