Benchmark indices opened the day higher, but, soon slipped into the red, as investors worried over the tightening of P Note norms, including KYC requirements.
P Notes, are instruments through which some foreign institutional investors invest in the Indian markets. Over the years, through these instruments a lot of foreign funds have invested in the Indian markets.
The Sensex was trading with gains of 35 points, while the Nifty was up 5 points in early trade.
The biggest loser in trade was Lupin Laboratories, which lost as much as 5 per cent in trade.
Shares in companies that are slated to declare results like Karnataka Bank and ITC were trading marginally higher.
Banking stocks managed to recover some lost ground after the sharp sell-off see on Thursday.
Meanwhile, markets across Asia were trading higher led by gains in the Shanghai composite and the Hong Kong's Hang Sang. The rupee was last seen tradign at 67.44 o the US dollar in early trade.