Sensexfell for a second day on Friday as blue chip shares including ITC Ltd declined after the Prime Minister's economic panel said it would be a challenge for the government to meet its fiscal deficit target in the current year.
India's new Reserve Bank of India (RBI) chief Raghuram Rajan to detail his first monetary policy review on Sept. 20 with focus squarely on whether the cbank will partly or wholly reverse its cash tightening steps or give an indication on when they might be rolled back.
ITC Ltd shares fell 1.9 percent while ICICI Bank ended 1.7 percent lower.
Also, traders lightened positions ahead of the whole price inflation data on Monday and the US Federal Reserve's decision on stimulus tapering, as well as RBI policy review later next week.
The benchmark BSE Sensex fell 0.25 percent while the broader NSE Nifty ended almost flat.