At 11:49 am, the S&P BSE Sensex was trading at 28,153, down 73 points, while the broader Nifty50 was ruling at 8,712, down 22 points.
In the broader market, BSE Midcap and BSE Smallcap indices gained 0.9% and 0.7% respectively.
"The quick turn lower from 8,750 yesterday warns about a structural weakness. But it looks too early to go short, and the upper extremity of the ascending broadening wedge points to the possibility of 8,800 being scaled before long liquidation attempts gain momentum," said Geojit BNP Paribas in a note.
Meanwhile, Indian IT sector leaders will meet both US lawmakers and officials from US President Donald Trump's administration later this month to lobby against any major changes to visa regulations that could hurt the country's $150 billion industry.
On Thursday, foreign portfolio investors (FPIs) bought shares worth a net Rs 108.59 crore, while Domestic institutional investors (DIIs) sold shares worth a net Rs 110.89 crore, provisional data available with BSE showed.
Sectors and Stocks
BSE, which recently concluded its Rs1,243 crore initial public offering, listed on rival NSE, was up 3% at Rs 1,120 against the offer price of Rs 806. The issue, which was also the first share sale by a domestic stock exchange, was open to bidding on 23 to 25 January.
SBI, Cipla, Lupin and ONGC were the top movers on BSE Sensex while ICICI Bank, Infosys, Tata Motors and L&T were the biggest laggards.
Sun TV gained 23.17% after a special court on Thursday discharged former Telecom Minister Dayanidhi Maran, his brother Kalanithi Maran and others in the Aircel-Maxis deal cases lodged by CBI and the Enforcement Directorate (ED).
Asian stocks got off to a tentative start on Friday, as investors await the outcome of a key US monthly jobs report that will set the tone for the Federal Reserve's policy outlook and as China's markets
reopen after a week-long break.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat after touching its highest level since mid-October in the previous session. Morning trade in markets
such as Australia was broadly steady, while Japan's Nikkei share average was up 0.6%.
European stocks closed lower after the Bank of England decided to keep its monetary policy unchanged, but raised its growth forecasts for 2017. The bank also revised down its inflation forecasts for the next three years.
The S&P 500 settled at levels around six weeks ago, losing steam due to lingering investor anxiety about US President Donald Trump's aggressive policies, such as restricting travel to the United States and rewriting trade deals.
(With inputs from Agencies)