Reuters Market Eye - The BSE Sensex is down 0.3 percent and the Nifty falls 0.13 percent.
Shares fall after a report by the Prime Minister's economic panel suggested it would be a challenge for the government to meet its fiscal deficit target of 4.8 percent of the GDP in the current year.
Blue chip shares such as ITC Ltd fall as traders lighten positions ahead of whole price inflation data on Monday and the U.S. Federal Reserve's decision on stimulus tapering, as well as RBI policy review later in the next week.
Among other large-cap shares, Infosys Ltd falls 1.4 percent and HDFC Bank Ltd is down 1.15 percent.
However, foreign institutional investors provisionally bought 9.30 billion rupees worth of shares on Thursday, bringing their total to nearly 66.7 billion rupees over the previous six sessions, exchange data shows.
(Reporting by Abhishek Vishnoi)