Benchmark share indices ended flat after gains in financials capped further downside while caution was seen ahead of the US jobs data later on Friday.
The S&P BSE Sensex ended down 34 points at 25,229 and the Nifty50 closed 2 points lower at 7,733.
In the broader market, BSE Midcap index gained 0.4% while the Smallcap inded ended down 0.2%.
Market breadth ended weak with 1381 losers and 1069 gainers on the BSE.
"After sharp gains in the previous months markets are taking a breather and are in a consolidation mode.
"Earnings have been a positive surprise which could prevent further downside. Foreign institutional investors are also partially booking profits after recent gains," said Kunj Bansal, ED & CIO, Centrum Wealth Manageme.
Foreign institutional investors turned net sellers in equities to the tune of Rs 389 crore on Thursday, as per provisional stock exchange data.
The Reserve Bank of India late Thursday issued draft guidelines on granting licences on a continuous basis for setting up of universal banks in the private sector.
ICICI Bank ended up over 1.5%.
The company's insurance arm ICICI Prudential Life Insurance is set to hire Bank of America Merrill Lynch and ICICI Securities for its planned $600 million to $700 million initial public offering, IFR reported on Friday citing two sources close to the plans. SBI was also up 2%.
Bharti Airtel ended up 0.6% after it entered into an agreement with Helios Towers Africa for divestment of about 950 towers in the Democratic Republic of Congo.
IT majors which earn most of their revenues from exports to the US ended mixed ahead of the US jobs data later today. Infosys and Wipro ended down 1%-2% each while TCS gained 0.4%.
Hero MotoCorp posted a 71% growth in net profit for the March quarter at Rs 814 crore against Rs 477 crore in the year-ago period. Turnover for the quarter increased to Rs 7,512 crore from Rs 6,794, an increase of around 11%. The stock ended down 0.8% on profit taking.
ITC shut its plants from May 4 to comply with a new stipulated pictorial warnings rule issued by the federal government, the company said in a statement.
ITC has gained marginally. The stock pared early losses to end flat with positive bias.
Among others, Xchanging Solutions ended locked in 20% upper circuit on the BSE after the company engaged in information technology (IT) services business announced voluntary delisting plan.
Diamond Power Infrastructure ended locked in upper circuit of 10% on the BSE after the company announced that the board will meet on Monday, May 16, 2016, to evaluate various debt re-alignment options including stake sale to strategic investor and re-organization of company’s various businesses.
ABG Shipyard slumped 20% to Rs 30.65, also its lifetime low on the BSE, after ECL Finance sold more than one million shares of the company in the open market.
Hindustan Composites surged 16% after the company reported 135% growth in net profit at Rs 18.9 crore for the quarter ended March 2016 compared with Rs 8 crore in the same quarter last fiscal.