Domestic benchmark indices settled around a percent lower on Friday amid heavy selling pressure in the last hour of the session.

Reports that the rating agency Moody's has also revised outlook of IT majors Infosys and TCS along with six financial companies such as Exim India, HDFC Bank, Hero FinCorp, HUDCO and SBI to negative, too, spooked market participants.

Rating agency Moody’s Investors Service yesterday downgraded India’s outlook to ‘negative’ from stable’ and fresh concerns over US-China trade deal.

The ratings agency downgraded India’s outlook on concerns that country's economic growth will remain materially lower than in the past.

Except realty and private banks, all the sectoral indices on the NSE ended in the red. Pharma stocks saw the steepest fall, followed by PSU banks and FMCG stocks.

The Nifty Pharma index slipped over 2 per cent to 7,787.40 levels while Nifty PSU Bank index ended at 2,437, down neary 2 per cent. On the other hand, Nifty Realty ended 1.66 per cent higher at 281 levels. Nifty Private Bank index gained 0.70 per cent to settle at 16,996.

Overseas, European stocks fell on Friday to halt a week-long rally as conflicting messages over U.S.-China trade talks unnerved markets, offsetting better-than-expected trade data from China. The pan European Stoxx 600 dropped half a percent to 404.64 after rising 0.4 percent in the previous session.

Meanwhile, Oil prices fell on Friday after U.S. crude oil stockpiles rose sharply last week and doubts resurfaced about the prospects for a formal U.S.-China trade deal. Benchmark Brent crude dropped 1.3 percent to $61.48 a barrel, after rising 0.9 percent in the previous session. U.S. West Texas Intermediate (WTI) crude futures were down 1.5 percent at $56.28 a barre, after climbing 1.4 percent on Thursday.

The 30-share benchmark ended at 40323.61 down by -330.13 points or by -0.81 per cent, while the NSE Nifty was at 11908.15 down by -103.90 points or by -0.86 per cent.

During the day’s trade, Sensex touched intraday high of 40749.33 and intraday low of 40263.94 The NSE Nifty touched intraday high of 12034.15 and intraday low of 11888.75.

The top gainers of the BSE Sensex pack were YES Bank Ltd. (Rs. 69.00,+3.76%), IndusInd Bank Ltd. (Rs. 1423.50,+3.08%), ICICI Bank Ltd. (Rs. 489.45,+2.25%), Kotak Mahindra Bank Ltd. (Rs. 1598.75,+0.92%), Mahindra & Mahindra Ltd. (Rs. 772.20,+0.27%), among others.

The top losers of the BSE Sensex pack were Sun Pharmaceutical Industries Ltd. (Rs. 421.80,-4.23%), Vedanta Ltd. (Rs. 155.50,-3.39%), Oil And Natural Gas Corporation Ltd. (Rs. 138.35,-2.64%), Tata Consultancy Services Ltd. (Rs. 2129.95,-2.54%), Hindustan Unilever Ltd. (Rs. 2086.25,-2.41%), among others.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2908, shares advanced were 1139 while 1564 shares declined and 205 were unchanged.