The 30-share Sensex ended at 18,736 down 57 points or 0.30% and the 50-share Nifty ended at 5,651 down by 7 points or 0.13%.
On the global front, Japan's Nikkei average shed 2.4 % on Friday as concerns mounted that Cyprus may be forced to exit the euro zone after the European Union gave the island's government until Monday to raise the billions of euros it needs to secure a bailout.
The Nikkei ended 297.16 points lower at 12,338.53, retreating from 12,650.26 hit on Thursday, its highest intraday level since early September 2008.
European shares dipped on Friday, putting a key index on track for its worst weekly drop since November, as worries over Cyprus' bailout problems dented sentiment.
The pan-European FTSEurofirst 300 index fell 0.1 % to 1,190.12 points, putting it on track for its worst weekly drop since November, while the euro zone's blue-chip Euro STOXX 50 index fell 0.2 % to 2,678.57 points.
Back home, the Reserve Bank of India is expected to take "baby steps to easing" and is likely to cut key policy rates by 0.25% in its mid-June policy review to revive growth, says a Bank of America Merrill Lynch report.
On the sectoral front, BSE Consumer Durable, Realty, IT, TECk, Healthcare, Oil & Gas and PSU indices declined between 1-2%. Power, Metal and Capital Goods ended marginally positive.
Tata Motors, M&M and Maruti Suziki fell between 0.4-1%.
Tata Motors ended lower on worries that China’s new stringent fuel economy norms might affect the company’s Jaguar Land Rover (JLR)
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