Sensex drops 111.34 points to end at 29,918.40; Nifty falls 38.10 points to 9,304.05 on the account of investors booking profit for the long weekend.
ITC, HDFC Bank and HDFC were index losers while ONGC, SBI and Maruti were the top gainers on the Sensex.
On the Nifty, ITC dragged the index lower while ONGC was its top gainer.
Nifty Realty index was down 1.7 per cent and was the leading sectoral loser. Shares of Prestige (down 4 per cent) and Delta Corp (down 4 per cent) and Indiabulls Real Estate (down 3 per cent) dragged the index lower.
The Indian benchmark indices retreated from record gains into the negative zone on Friday on the back of profit booking by investors ahead of the long weekend.
"Markets have been rising for so long. Any selloff can be partly attributed to profit taking, especially ahead of the three-day weekend," said Deepak Jasani, HDFC Securities.
However, this week the NSE Nifty index and BSE Sensex inched closer to a 2 per cent gain to mark its best performance since mid-March.
HDFC Bank and ITC reversed gains from previous session to become top laggards on the BSE Sensex, shedding over per cent each.
ITC, IOC and BPCL were top laggards on the NSE Nifty index.
STOCKS TO LOOK OUT FOR
As the much awaited Baahubali 2 hits the cinemas today, shares of listed multiplex operators like PVR and Mukta Arts will be in focus.
Investors eye jewellery and gold stocks such as PC Jeweller on occasion of Akshaya Tritiya.
Healthcare firm Biocon's consolidated net profit dropped 58 per cent to Rs 148.4 crore in the fourth quarter ended on March 31, 2017. The shares of Biocon are trading 0.70 per cent lower on the BSE.
Realty stocks slip in trade today. DLF down 2.05 per cent, HIDL down 2.01 per cent and Indiabulls plunged 6.53 per cent on the BSE Sensex.
10.15 am: Realty, FMCG, technology, IT, bank and metal stocks were trading in the negative zone, down by up to 0.81 per cent.
Shares of the country's largest carmaker, Maruti Suzuki, was trading higher by 1.19 per cent to Rs 6,447.25 after the company yesterday posted 15.8 per cent rise in net profit to Rs 1,709 crore for the fourth quarter of last fiscal ended March 31.
Brokers said that continued selling by participants mirroring a weak trend at other Asian bourses as investors trimmed positions following a six-day rally, besides a tepid lead from Wall Street, mainly dampened sentiments.
Caution prevailed as investors were not keen to raise bets at prevailing record levels despite the start of May futures and options series in the derivatives segment, they added.
HDFC Bank fell over 1 per cent, becoming the top loser on the Sensex even after the scrip's market capitalisation crossed the Rs 4 lakh crore mark yesterday and a strong Q4 earnings report.
HDFC Bank is only the third firm after Reliance Industries and Tata Consultancy Services to have crossed this mark.
9.54 am: The BSE Midcap rose 0.02 per cent while the BSE Smallcap advanced 0.25 per cent.
9.46 am: Snapping its three-day streak, the rupee lowered from a 21-month high to end 5 paise lower at 64.16 on Thursday against the US dollar.
The rupee weakened by 4 paise to 64.20 against the US dollar in early trade today on increased month-end demand for the American currency from importers at the Interbank Foreign Exchange.
Moreover, the US dollar's gain against other currencies overseas and a lower opening of the domestic equity market put pressure on the rupee, forex dealers said.
The rupee had eased from a 21-month high to close 5 paise lower at 64.16 against the dollar in yesterday's trade on fresh demand for the American currency from importers.
9: 38 am: Maruti Suzuki stock trading 1.20 percent or 76.65 points higher at 6445 level.
9: 31 am: While the Sensex is down 83 points at 29,946 level, the Nifty falls 30 points to 9312 level.
9: 30 am The rupee opens at 64.10 to the dollar versus its previous close of 64.15.
9: 25 am: Sensex is trading flat with a negative bias in opening trade with 15 components in red.