The broader NSE Nifty also settled lower by 23.10 points, or 0.19 per cent, at 11,922.80.
In a highly volatile session, the benchmark BSE Sensex ended 118 points lower, dragged by losses mainly in auto and financial stocks.
The NSE Nifty too edged 23 points down to settle below the 12,000-mark.
However, on a weekly basis, the Sensex gained 279.4 points and the Nifty rose 78.70 points.
With the portfolios of ministers in the Narendra Modi government allocated, equity market weighed other global and domestic factors for further cues.
After gyrating nearly 750 points, the 30-share index settled 117.77 points, or 0.30 per cent, lower at 39,714.20.
The gauge hit an intra-day low of 39,374.24 and a high of 40,122.34.
The broader NSE Nifty also settled lower by 23.10 points, or 0.19 per cent, at 11,922.80.
During the day, the index hit a low of 11,829.45 and a high of 12,039.25.
Yes Bank was the top loser in the Sensex pack, falling 4.27 per cent.
Other losers include ITC, Vedanta and M&M, shedding up to 3.61 per cent.
Asian Paints, TCS and HCL Tech were among the gainers, rising up to 2.43 per cent.
Investors also appeared cautious ahead of GDP data, scheduled for release later in the day, traders said.
BJP president Amit Shah who played a crucial role in the return of his party's government at the Centre will be the new Home Minister in Modi 2.0 Cabinet while incumbent Rajnath Singh has moved to Defence, another high profile ministry.
Outgoing Defence Minister Nirmala Sitharaman will be the new Minister for Finance and Corporate Affairs while surprise inductee, former foreign secretary S Jaishankar, has been allocated the critical Ministry of External Affairs, the Rashtrapati Bhavan announced on Friday.
Meanwhile, foreign institutional investors (FIIs) bought equities worth Rs 1,664.74 crore on Thursday, while domestic institutional investors (DIIs) sold shares to the tune of Rs 1,122.60 crore, provisional data available with stock exchanges showed.
Weak trend in global markets too weighed on investor sentiment here, traders said.
Photograph: Danish Siddiqui/Reuters
