Sensex and Nifty, the two key equity benchmarks, on Friday began trade on a bearish note, halting their eight-day rally, tracking weak trends in global markets.
The BSE Sensex declined 360 points to 62,924, while the broader NSE Nifty by 96 points to 18,716.
On the 30-share Sensex platform, Hindustan Unilever, Maruti, UltraTech Cement, Mahindra & Mahindra, Asian Paints, and Nestle were among the major laggards. On the flip side, Tata Steel, Tech Mahindra, IndusInd Bank, Reliance Industries, and ITC were the winners.
In the broader markets, the BSE MidCap index was flat, while the SmallCap index was up 0.2 per cent.
Sectorwise, Nifty oil and gas, realty, metal and media indices were the only pockets in green. Auto, Financials slipped the most.
Among specific stocks, YES Bank rose 2 per cent after the RBI gave a conditional approval for its stake sale to Carlyle and Advent International.
Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong were trading lower. Wall Street had ended mostly lower on Thursday.
In the previous session, the BSE Sensex had climbed 185 points (0.29 per cent) to end at 63,284, its fresh record closing high. The Nifty advanced 54 points (0.29 per cent) to end at 18,812, its new record closing high.
International oil benchmark Brent crude was trading 0.30 per cent higher at $87.14 per barrel.
Foreign Institutional Investors (FIIs) offloaded shares worth Rs 1,565.93 crore on Thursday, as per exchange data.
Meanwhile, the rupee appreciated 18 paise to 81.08 against the US dollar in early trade on Friday supported by a weak dollar in the overseas market.
Forex traders said weak domestic equities and foreign fund outflows weighed on the local unit and restricted the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 81.11 against the dollar, then gained further ground to touch 81.08, registering a rise of 18 paise over its previous close. On Thursday, the rupee appreciated by 4 paise to close at 81.26 against the US dollar.