Markets ended lower on Friday dragged by financials as investors adopted a cautious stance ahead of the June-quarter current account deficit.
The 30-share Sensex ended down 167 points at 19,727 and the 50-share Nifty ended 49 points lower at 5,833.
In the broader markets, the smallcap index was up 0.3% while the midcap index closed, down 0.1%. Both the indices relatively outperformed the BSE benchmark index which was down nearly 1%.
At 1600 hrs, the rupee was trading at Rs 62.38 compared with previous close of Rs 62.08 per dollar.
Most Asian stock markets posted modest gains up on Friday after U.S. jobless claims data pointed to an improving labor market, but the lack of progress in budget and debt negotiations in Washington kept investors on edge.
MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2%. Japan's Nikkei bucked the trend, falling 0.3% as the market turned its focus to the government's growth strategy and tax plans next week.
European shares were in the red, with Germany's DAX, Britain's FTSE and France's CAC 40 down 0.3-0.7%.
Sectors & Stocks
On the sectoral front, Bankex, Realty, Metal, Capital Goods, Power and Consumer Durables indices were down between 1-2%.
PSU, Auto and Teck indices too closed in the negative, down 0.3-0.4%.
The only indices in the positive territory were FMCG and Oil & Gas which added 0.4% and 0.2% respectively.
BHEL, Tata Steel and Bharti Airtel down 3-4% were the major losers among the Sensex-30.
Hindalco, ICICI Bank, Sesa Goa, SBI, Dr Reddys Lab, HDFC Bank, L&T, Mahindra & Mahindra, Maruti Suzuki, Hindustan Unilever and HDFC down 1-3%