The 30-share Sensex ended down 47 points at 27,869 after hitting a high/low of 27,981/27,740 and the 50-share Nifty ended 1 point lower at 8,337 after touching a high/low of 8,360/8,290.
Foreign institutional investors were net buyers in Indian equities worth Rs 1,031 crore on Wednesday, as per provisional stock exchange data.
The Indian rupee lost further ground and was trading at Rs 61.64 to the US dollar compared to the previous close of Rs 61.41.
Asian shares except for Japan ended lower on Friday ahead of U.S. employment data later today.
Japan's Nikkei ended up 0.5% as sentiment was supported by a pledge from the European Central Bank to take further steps to revive the euro zone economy.
Meanwhile, Chinese shares pared early gains to finally end 0.3% lower while Hang Seng closed down 0.4% and Straits Times eased 0.1%.
European stocks edged higher on hopes that the European Central Bank may announce monetary easing measures to boost growth in the euro zone. The CAC, DAX and FTSE 100 were up 0.1-0.8% each.
The BSE Healthcare and Realty indices were the top sectoral gainers up over 2% each followed by Consumer Durables index up 0.4%. Capital Goods, Metal, Power and Auto were the top losers.
Pharma shares recouped early losses to finally end with gains. Dr Reddys Lab ended 4.5% up after the US Food and Drug Administration said it has granted final approval to Indian drugmaker Dr Reddy's Laboratories and US firm Endo International Plc to make cheaper copies of Roche Holding AG's antiviral Valcyte.
The tentative approval granted to Ranbaxy was revoked by FDA.
Sun Pharma gained 2,5% after paring early lossed while Cipla ended 1% lower.
Auto shares ended lower with Tata Motors and Maruti Suzuki down between 0.2-0.3% while Bajaj Auto and M&M ended 1-1.4% lower.
Hero Motocorp ended down 2% on a block sell-off of 8.5 million its shares by private equity company Bain Capital.
Among bank shares, Axis Bank has gained 2.4% and ICICI Bank rose 1% while SBI ended down 1.4%. HDFC Bank ended down 1.5%
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