"The inflation data has definitely spurred worries over the timing of the Fed rate cut in 2024," said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.

Meanwhile, a treaty between India and Mauritius is not likely to have retrospective taxation effect as tax will be imposed only after the date of the signing of the agreement between the two, news channel CNBC-TV18 reported, citing sources.

This may have also weighed on domestic equities on Friday, Deven Choksey, managing director of DRChoksey FinServ, said.

Metal stocks (.NIFTYMET) opens new tab rose 2.90% and were the top weekly sectoral gainer by percentage.

Pharma stocks (.NIPHARM), opens new tab fell 1.94% this week, hurt by a 4.29% drop in Sun Pharma (SUN.NS), opens new tab following an order by the U.S. drug regulator related to the company's Dadra facility.

On the day, the Nifty 50 (.NSEI), opens new tab fell 1.03% to 22,519.40, while the S&P BSE Sensex (.BSESN), opens new tab shed 1.06% to 74,244.90.

India's top IT services provider Tata Consultancy Services (TCS.NS), opens new tab rose 0.42% ahead of its quarterly results. The company reported fourth-quarter revenue that missed estimates, moments after the closing bell.

Focus will shift to India's consumer price inflation data for March. The numbers are expected later in the day.

India's consumer price inflation likely eased to a five-month low of 4.91% in March, according to economists polled by Reuters.