The correction in the market was witnessed as traders reacted negatively to a report from the University of MI showing a bigger than expected drop in consumer sentiment in the month of April.
United States stocks fell last Friday as weakness in shares of banks and finance firms added to the political and trade tensions weighing on the market.
Hero MotoCorp (2.02%), Kotak Mahindra Bank (1.88%) and Adani Ports (1.85%) were the top gainers on Sensex. Inflation based on wholesale prices eased marginally to 2.47 per cent in March on cheaper food articles, especially pulses and vegetables.
Wholesale inflation was 2.48% in February and 5.11% in March previous year.
Meanwhile, the benchmark BSE Sensex dropped 293.31 points, or 0.85 per cent, to 33,899.34 in opening deals.
Housing Development Finance Corp Ltd and HDFC Bank Ltd were the top contributors to the indexes with gains of 1.6 percent and 0.9 percent respectively. The 50-share Nifty50 index closed the day 48 points, or 0.46 per cent up, at 10,528 with 34 stocks in the green.
The US Dow Jones Industrial Average ended 0.50% lower in Friday's trade.
The wider Nifty50 closed higher by 41.50 points or 0.40 per cent to 10,458.65 points, while the Sensex closed at 34,192.65 points, up 91.52 points or 0.27 per cent. Intra-day, it hovered between 10,396.35 and 10,540.15.
Healthy buying in healthcare and fast moving consumer goods (FMCG) stocks however restricted further losses.
Market breadth was negative with 1,253 stocks closing higher against 1416 stocks ending lower on BSE.
Shares of Infosys fell 3.86 per cent to Rs 1,123.90 less-than-expected FY19 revenue guidance.