Further, worries of a probable sell off in index heavyweights by foreign institutional investors amid a weakening rupee also weighed on market sentiment.
The 30-share Sensex ended down 90 points at 19,429 after hitting an intra-day low of 19,398 and the 50-share Nifty ended down 40 points at 5,881 after touching an intra-day low of 5,871.
The rupee headed towards another all-time low this month as demand for the greenback continues.
The rupee breached the Rs 57 mark per dollar in afternoon trades on Friday due to demand for the greenback from oil importers, said currency traders.
On the global front, Japanese equities plunged to two-month lows on Friday, with the yen rising against the dollar as investors fretted over US jobs data due later, while constant market agonizing about the Federal Reserve's stimulus plans drove Asian shares to fresh 2013 lows.
The Nikkei average shed as much as 2.8% and entered bear market territory earlier, having lost 20 % from a 5-1/2 year high reached two weeks ago. The Nikkei ended down 0.2%, closing at its worst week in over two years.
European markets are trading almost flat.
Back home, India's retail inflation still remains high despite the wholesale price-led
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