Key barometers extended losses for fifth consecutive session on Friday, dragged by selling pressure in banks and metal stocks. The Nifty ended below the 200-day simple moving average (DMA) placed at 11,262.

The barometer index, the S&P BSE Sensex, fell 433.56 points or 1.14% to 37,673.31, as per the provisional closing data. The Nifty 50 index fell 150.15 points or 1.33% to 11,163.85, as per the provisional closing data.

The market breadth was weak. On the BSE, 976 shares rose and 1,638 shares fell. A total of 251 shares remain unchanged. In Nifty 50 index, 11 stocks advanced and 39 stocks declined.

The broader market was under pressure. The S&P BSE Small-Cap index fell 0.79%. The S&P BSE Mid-Cap index fell 0.94%.

Market sentiment was dented after the Reserve Bank of India (RBI) cut its FY20 GDP growth rate forecast sharply to 6.1% from 6.9%. Investors were also cautious ahead of US jobs numbers later today for clues on whether the US central bank will cut rates this month.

The Monetary Policy Committee (MPC) of RBI on Friday slashed the repo rate, the rate at which it lends to banks, by 25 basis points. The repo rate now stands at 5.15%. The MPC also decided to continue with an accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.

Meanwhile, the IHS Markit India Services Business Activity Index contracted for the first time in three months. The headline figure fell from 52.4 in August to 48.7 in September, its lowest mark since February 2018.

The Nifty opened higher, but pared gains as the session progressed. It slipped into negative terrain in early afternoon trade after the RBI policy outcome. Selling gathered pace in the afternoon trade, dragging the 50-unit index below 11,200-mark. The index ended near the day's low amid strong selling pressure.

The Nifty Bank index erased early gains and fell over 2%. The S&P BSE Bankex was down 2.54% at 31,272.77.

The Nifty Bank index extended its losing streak for fifth consecutive session. The index has now shed 7.55% in five consecutive trading sessions from its recent closing high of 30002.60 on 26 September 2019.

Among private sector banks, Federal Bank (down 3.49%), ICICI Bank (down 2.82%), Kotak Mahindra Bank (down 2.76%), HDFC Bank (down 2.4%), Axis Bank (down 1.68%), RBL Bank (down 1.51%) and Yes Bank (down 0.12%) tumbled.

Among PSU Banks, Bank of India (down 2.75%), Union Bank of India (down 2.14%), State Bank of India (down 2.02%), Bank of Baroda (down 1.98%), Punjab National Bank (down 1.86%), IDBI Bank (down 1.3%), Indian Bank (down 1.2%), Canara Bank (down 0.91%) and Allahabad Bank (down 0.73%) tumbled.

UCO Bank jumped 7.83%. The bank said that the board of directors of the bank approved the proposal for the issue of equity shares on preferential basis to Government of India against capital infusion of Rs 2130 crore. The announcement was made after market hours yesterday, 3 October 2019.

HDFC ended almost flat at Rs 1974.50. HDFC issued business update for the quarter ended on 30 September 2019. HDFC said that profit on sale of investments rose 83% Rs 1,632 crore in Q2 September 2019 compared with Rs 891 crore in Q2 September 2019. Profit included profit on sale of part stake of equity shares in Gruh Finance. HDFC's stake in Gruh Finance stood at 38.2%. Income from dividend stood at Rs 1,074 crore in Q2 September 2019 versus Rs 6 crore in Q2 September 2019. The dividend from HDFC Bank was Rs 865 crore while that from Gruh Finance was Rs 70 crore. HDFC said that it will announce Q2 September 2019 results on 4 November 2019.

Marico was down 1.69% to Rs 377.65. Shares of the company lost 4.17% in three trading sessions from its recent closing high of Rs 394.10 on 30 September 2019. On Tuesday, 1 October 2019, Marico announced that demand and consumer sentiments weakened during the quarter, which manifested in slowing category growths in the firm. Further, the tobacco giant added that, 'liquidity challenges have led to some correction in trade inventories and exerted pressure on channel partners investments and returns'. In the traditional channel, both rural and urban faced distress during the quarter.

The Indian Hotels Company (IHCL) rose 0.52%. Anheuser Busch InBev (AB InBev) signed an agreement with IHCL to launch a premium chain of microbreweries within its marquee hotels across key locations in India. This collaboration is worth Rs 150 crore with plans to open 15 microbreweries over the next five years. The announcement was made after market hours yesterday, 3 October 2019.

National Fertilizers surged 2.49% after the company said its fertilizer sales jumped 25% to 27 lakh MT in April-September 2019 over April-September 2018.

Overseas, most European stocks were trading higher while most Asian stocks declined on Friday as investors turned cautious ahead of a key US job report that could help determine whether the Federal Reserve cuts interest rates further.

Investors await U.S. nonfarm payrolls data for September, expected to be released later on Friday.

US stocks rose on Thursday after data showing US services-sector activity at a three-year low fuelled expectations that the Federal Reserve would cut interest rates to stem a wider economic downturn.

The Institute for Supply Management's index of the health U.S. services sector came in 52.6%, in September, down from 56.4% in August.