Benchmark BSE Sensex declined by 387 points on Friday, snapping its three-day gaining streak due to profit-taking in blue-chip shares HDFC Bank and ICICI Bank.
The 30-share BSE Sensex tanked 387.73 points or 0.47 per cent to settle at 82,626.23.
During the day, it dropped 528.04 points or 0.63 per cent to 82,485.92.
The 50-share NSE Nifty declined 96.55 points or 0.38 per cent to 25,327.05.
Among Sensex firms, HCL Tech, ICICI Bank, Titan, Trent, Kotak Mahindra Bank, Hindustan Unilever, Mahindra & Mahindra and HDFC Bank were the major laggards.
However, Adani Ports, Bharti Airtel, SBI, NTPC and Sun Pharma were among the gainers.
All Adani group stocks, including Adani Power, Adani Total Gas, Adani Green Energy, Adani Enterprises and Adani Energy Solutions rallied up to 13 per cent after markets regulator Sebi cleared billionaire Gautam Adani and his group of stock manipulation allegations made by US short-seller Hindenburg Research.
Sebi probe found that fund transfer between group companies did not fall foul of any regulation.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index settled lower while Hong Kong's Hang Seng ended in positive territory.
Global oil benchmark Brent crude dipped 0.55 per cent to $67.07 a barrel.
Foreign institutional investors (FIIs) bought equities worth Rs 366.69 crore on Thursday, according to exchange data.