The 30-share Sensex ended down 208 points at 28,261 and the 50-share Nifty closed 64 points lower at 8,571.
Bank shares were the top losers after sharp gains last week.
Investors sought to book profits at attractive valuations after recent run up in last few trading sessions.
Fresh investments by corporates up just 5.8% in FY17, lowest since 1992
Banks stocks continued to trade weak along with FMCG major ITC.
The Central Bureau of Investigation has found no criminality in the allocation of about 60 coal blocks, which are likely to be taken out of the purview of its ongoing probe after taking the Supreme Court's permission.
The Sensex soared 402 points higher to end at 25,720 and the Nifty surged 130 points to close at 7,819.
Brokers said a flurry of buying by investors in blue-chips mainly influenced the sentiment.
Markets gained for the second straight session to kick-off the September F&O series on a robust note.
Stocks of companies having operations and exports to Europe were the top losers.
The 30-share Sensex ended down 32 points at 28,851 and the 50-share Nifty closed 12 points lower at 8,712.
Month-end dollar demand from importers resulted in the rupee touching a new all-time low on Wednesday against the dollar.
Financials were the top losers while oil shares also declined amid weak crude oil prices.
Nifty 50 firms' net profit estimated to grow by a modest 3.1% in Q2, reports Krishna Kant.
Bank of Baroda ended flat after sharp gains in the previous session.
Asian markets were trading mixed with shares in China witnessing profit taking after sharp gains in the previous session.
Busting a major 'front running' case in the stock market, Sebi on Friday ordered impounding of unlawful gains worth nearly Rs 15 crore (Rs 150 million) from brokerage firm Sharekhan and 15 other entities.
An expectation of tax sops in Budget, weakness of dollar and robust tax collection are adding positive sentiment
The 30-share Sensex ended up 8 points at 27,508 and the 50-share Nifty closed 1 point higher at 8,284.
Of these, three stocks belong to the automobile pack and two are from the pharma.
The 30-share Sensex ended down 538 points at 26,781 and 50-share Nifty ended down 152 points at 8,067.
The Sensex ended down 251 points at 27,351 and the Nifty shed 65 points to close at 8,228.
Metal shares were the top gainers with Hindalco up over 5%.
The recovery was led by information technology exporters.
BSE Bankex, Healthcare, Capital Goods and Consumer Durables ended higher.
Infosys, TCS, ICICI Bank and Sun Pharma among the top losers of the hour.
The breakdown of talks between Greece and its international creditors raised fears of Greece's exit from the euro zone.
The breadth was neutral with 1,329 advances and 1,320 declines.
Banks, real estate and metal scrips among the top losers.
The companies are crying foul over the cancellation of 25 blocks held by 68 firms over the past two days.
The Sensex closed higher by 170 points at 26,128 and the Nifty rose 59 points to end at 7,943.
Top gainers from the Sensex pack are ONGC, HDFC, HUL, RIL and Cipla.
Sensex in green, midcaps, smallcaps fail to show up; bluechips rule.
Sensex, Nifty end lower on global concerns.
Index heavyweights were the top losers along with bank shares.
S&P upgraded India's credit outlook to 'stable' from 'negative' earlier.
Nifty September F&O series ended lower after seven consecutive positive series with Metal Index falling the most
HDFC, TCS, RIL, ITC and ICICI Bank dragged the Sensex by over 100 points.
The 30-share Sensex ended down 224 points at 28,442 and the 50-share Nifty ended down 101 points at 8,606.
The top gainers on the Sensex were Cipla, Bharti Airtel, Maruti Suzuki, Hero Moto & Sesa Sterlite.