The Sensex closed 133 points lower at 18,625 and the Nifty was down 41 points at 5,664.
Asian shares fell sharply on Friday as disappointing earnings from large corporations raised worries over economic growth slowdown.
Shares in Japan witnessed profit taking after they recently touched four-week highs.
The Nikkei ended down 1.4%. The Shanghai Composite was down 1.7%, Hang Seng dropped 1.2%.
The KOSPI was down 1.7% cent after lower-than-expected from global electronics major Samsung.
European shares opened lower following a weak session in Asia as lacklustre earnings from tech giant Apple undermined confidence ahead of American growth data due later on Friday. CAC, DAX and FTSE lost 0.3-0.6%.
Back home, among the sectoral indices on the BSE, Consumer Durables, FMCG,Healthcare, PSU, Power and Bankex were among the top losers down 1-3% each.
However, Auto Index was the sole gainer up 0.8% led by Mahindra and Mahindra,Bajaj Auto and Hero MotoCorp.
Index heavyweights Reliance Industries closed down 1.4%
Markets end lower on weak European cues
Five Indian firms on 50 most INNOVATIVE companies
BSE, NSE among top 10 exchanges in Asia-Pacific region
ICICI net profit up 20% at Rs 2,390 crore
Banking, capital goods stocks boost markets