Here are 10 things to know:
At 12:23 pm, the Sensex traded 153 points lower at 35,953 and the Nifty was down 47 points at 10,774.
Top laggards on the 50-scrip benchmark index were Tata Motors, TCS, Larsen & Toubro, IndusInd Bank and M&M, and trading between 1.3 and 2.5 per cent lower.
The Nifty Bank - comprising banking stocks - declined 0.5 per cent during the session.
Bank of Baroda and State Bank of India shares declined as much as 2.6 per cent and 1 per cent respectively.
Some state-owned banks will have to wait for about a month before knowing which of them will have lending curbs eased after a Reserve Bank of India panel reviews their December quarter results, news agency Reuters reported on Thursday citing an official with direct knowledge of the matter.
TCS, the country's largest software services exporter, on Thursday posted a revenue growth of 12.1 per cent (year-on-year), its highest in 14 quarters.
Infosys shares declined 1.1 per cent. The country's second largest IT services exporter is due to announce its earnings for the December quarter post-market hours in the day.
Analysts say macroeconomic data besides key corporate earnings reports will be watched closely.
The government will release monthly data for factory activity, measured by Index of Industrial Production (IIP), in evening. Inflation data are due on Monday. Retail inflation is expected to have eased to 2.20 per cent in December, which would mark its lowest level recorded since June 2017, according to a poll by news agency Reuters.
Meanwhile, the rupee edged higher to 70.41 against the dollar on Friday morning.
(With agency inputs)