Globally, investors are worried over the economic recovery which was disappointing after US economic data, showed US manufacturing data indicating a deepening slowdown in the nation's economy.
In Asia, most of the major markets were trading in the red, the Nikkei 225 down by 0.52%.The Hang Seng was lower by 1.01% and Shanghai was down by 1.35%.
Among sectoral indices on the BSE, most of the sectors that were trading in the red.
On Thursday, Moody's cut the rating of the 15 big banks adding fuel to the fire, which put pressure on commodities and equities.
The gainers in morning trade were Cipla, BHEL, Hero Moto Corp and HUL.
Stocks that failed to lure investors in early trade were Jaiprakash Associates, Ambuja Cements, HDFC and ACC.