Benchmark Indices have extended the losses post the announcement of the Q1 GDP numbers and weakness among Auto and IT shares.
By 1300, the Sensex was down 91 points at 17,450 and the Nifty has declined 40 points to 5,276.
India's economy grew at a higher-than-expected 5.5% in the quarter ending in June, against analysts' forecasts of 5.3%, government data showed on Friday.
The manufacturing sector grew an annual 0.2% during the quarter, while farm output rose 2.9%, the data showed. In the quarter ending in March, economic growth was at 5.3%.
The rupee rises to 55.72/73 from a session low of 55.7750, though still down from its previous 55.63/64 close.
On the global front, Japan's Nikkei average fell to a four-week closing low on Friday as resources-related shares remained under pressure on concern over slowing China growth, while Sharp Corp sank on uncertainty over a tie-up with Taiwan's Hon Hai Precision Industry.
Back home, BSE Metal, Auto, Power, FMCG and IT indices have plunged by nearly 1% each. Sectors like TECk, Realty, Capital Goods, Oil & Gas and PSU are trading marginally lower. However, BSE Consumer Durable, Banks and Healthcare indices are trading marginally higher.
Shares in public sector banks turn positive after April-June GDP data showed the farm sector grew more strongly than expected, easing worries of rural non-performing assets. Farm output rose 2.9 in the April-June quarter. State banks are seen particularly exposed to the farming sector.
State Bank of India gains 0.8%, Bank of India rises 0.9%, while Union bank gains 2.8 percent. Dena Bank, Karnataka Bank, Andhra Bank, Allahabad Bank, Union Bank of India, Indian Overseas Bank, Oriental Bank of Commerce and Central Bank of India were up 2-3%, while State Bank of India, Bank of India and HDFC Bank gained more than 1% each on the BSE.
Auto shares like Hero MotoCorp, Tata Motors, Bajaj Auto, M&M and Maruti Suzuki have fallen between 1-2%. Auto shares remain under pressure on concerns that sales growth in August would remain subdued on account of high interest on auto loans and rising fuel prices.
Shares of software exporters such as Infosys and TCS are down ahead of the key US economic data due for release on Friday. TCS and Infosys are down 1% each.
Index heavyweight Reliance Industries has witnessed profit taking after over 3% gains last week. The stock is down 0.9%.
Metal shares like Coal India, Hindalco, Sterlite and Tata Steel have melted between 1-2%.
Cipla is trading higher by 1% on back of heavy volumes on the counter.
Meanwhile, BSE Midcap index has gained by 0.37% whereas BSE Smallcap index is up 0.44%.
The market breadth in BSE remains healthy with 1,303 shares advancing and 1,162 shares declining.