As of 0508 GMT, the blue-chip NSE Nifty 50 index was down 0.29% at 15,833.90, while the benchmark S&P BSE Sensex dipped 0.26% to 52,916.30. The broader Nifty 50 index is trading below its 21-day moving average, signalling an impending downward trend in the market.

Major lenders HDFC Bank and ICICI Bank declined 0.9% and 0.8%, respectively, and were the top drags on the Nifty Bank index that fell 0.9%.

The Nifty Auto index extended losses, falling 0.54%. For the week so far, it shed 2.52%.

Among global markets, Asian shares hit a two-month low as the global spread of the Delta virus variant left investors worried of a stalled worldwide economic recovery.

Software services giant Tata Consultancy Services shares fell as much as 1.5% after the company reported a 29% jump in June-quarter net profit on Thursday. Analysts, however had expected a profit of 93.72 billion rupees, slightly above the company's reported figure of 90.08 billion rupees.

Bharat Dynamics added 4.4% after the firm won a 4.99 billion rupees ($66.79 million) contract for supply of Akash missile to the Indian Air Force. ($1 = 74.7100 Indian rupees)