Domestic shares declined on Friday, dragged by losses in index pivotals HDFC, Reliance Industries (RIL) and Kotak Mahindra Bank, amid mixed cues from other Asian markets.

The barometer index, the S&P BSE Sensex, fell 407.14 points or 1.03% to 39,194.49, as per the provisional closing data. The Nifty 50 index fell 107.65 points or 0.91% to 11,724.10, as per the provisional closing data.

The S&P BSE Mid-Cap index was down 0.38%. The S&P BSE Small-Cap index was up 0.14%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1183 shares rose and 1299 shares fell. A total of 167 shares were unchanged.

Investor sentiment took a hit after oil prices rose sharply. Brent crude, the global oil benchmark, surged on Thursday amid renewed tensions in the Middle East after Iran shot down a US military drone. In the commodities market, Brent crude for August 2019 settlement was up 39 cents at $64.84 a barrel. The contract rose $2.63 or, 4.25% to settle at $64.45 a barrel in the previous trading session

India imports majority of its crude requirements and a spike in crude raises concerns on fiscal deficit, inflation and gives less room for the government to boost growth through spending on infrastructure.

Domestic market was also cautious ahead of the outcome of the Union Finance Minister Nirmala Sitharaman's first meeting of the GST Council on Friday. In its 35th meeting, the GST Council is expected to discuss measures that will improve compliance by businesses and merchants and cut down tax evasion by the use of technology.

Sitharaman is scheduled to present the budget for 2019-20 on 5 July 2019. The Economic Survey for the current financial year will be tabled on 4 July 2019.

On the equity front, index heavyweights witnessed selling pressure. HDFC was down 2.75% to Rs 2,138.30. Reliance Industries was down 1.36% to Rs 1,279.30. Kotak Mahindra Bank was down 1.61% to Rs 1,493.15.

Tech Mahindra (up 2.36%), Hindalco Industries (up 1.98%) and State Bank of India (up 1.17%), advanced.

Yes Bank (down 4.28%), Hindustan Unilever (down 2.25%) and Hero MotorCorp (down 2.02%) declined.

State-run NTPC rose 0.19% to Rs 134.80. NTPC said that the company participated in the 750 MW tender floated by Solar Energy Corporation of India (SECI) for Rajasthan. In the reverse auction held on 19 June 2019, NTPC has won 160 MW of Solar capacities at a levelised tariff of Rs.2.50 per unit, applicable for 25 years. This solar project shall be set up by NTPC under EPC mode and shall add to the installed capacity of NTPC. The announcement was made after market hours yesterday, 20 June 2019.

Tata Motors was down 0.22% to Rs 158.80. Moody's Investors Service downgraded the company's corporate family rating (CFR) and the company's senior unsecured instruments rating to Ba3 from Ba2. The outlook remains negative. The announcement was made after market hours yesterday, 20 June 2019.

Indiabulls Housing Finance rose 2.02%. Lakshmi Vilas Bank hit an upper circuit limit of 10% at Rs 63.50. The Competition Commission of India approved the proposed amalgamation of Indiabulls Housing Finance with the Lakshmi Vilas Bank. The scheme of amalgamation of Indiabulls Housing Finance (IBH) and Indiabulls Commercial Credit (ICCL) with The Lakshmi Vilas Bank (LVB) was approved by the Competition Commission of India (CCI). The scheme of amalgamation remains subject to receipt of applicable regulatory and other approvals.

On 5 April 2019, Lakshmi Vilas Bank said that its board approved a merger with Indiabulls Housing Finance. The share-swap ratio for the merger has been fixed at 1:0.14, which means that for every 100 shares of Lakshmi Vilas Bank held by shareholders, they will be entitled to receive 14 shares of Indiabulls Housing Finance.

Car major Maruti Suzuki India was down 3.13% to Rs 6,429.75. Bank of Baroda was down 0.25% to Rs 118.25. Maruti Suzuki and Bank of Baroda joined hands to support dealer inventory financing. The partnership with Bank of Baroda will allow Maruti Suzuki India to provide more comprehensive financing opportunities for dealers as well as customers. The dealer inventory financing will be done as per Bank of Baroda's existing product program of supply chain finance.

Meanwhile, in a separate announcement, Maruti Suzuki India announced that Dzire is now compliant with AIS-145 Safety Norms (both petrol and diesel). Dzire Petrol is also now BS-VI compliant. This has led to a price hike across model. The price shall vary from Rs. 5,82,613 to Rs. 9,57,622 (ex-showroom price in Delhi and NCR region). The announcement was made after market hours yesterday, 20 June 2019.

Overseas, most European markets were trading higher while Asian stocks ended mixed on Friday. Market focus is largely attuned to simmering geopolitical tensions between the US and Iran. Iran reportedly shot down a US military drone and escalated the volatile situation between Washington and Tehran. The event has intensified fears of military confrontation in the Middle-East.

US stocks advanced on Thursday, with the S&P 500 closing at a record high, in a broad market rally, after the Federal Reserve signaled that an interest-rate cut may be forthcoming.

Markets rallied after Federal Reserve Chairman Jerome Powell on Wednesday signaled that the central bank may cut benchmark interest rates, currently at a range of 2.25%-2.50%, in the coming weeks if the economic outlook buffeted by U.S.-China trade tensions doesn't show signs of improvement.

The Fed next meets July 30-31, while President Donald Trump is reportedly expected to speak to Chinese President Xi Jinping on the sidelines of the coming Group of 20 meeting of the world's richest countries in Japan next week.

In economic data, the US current-account deficit fell 9.4% in the first quarter mostly because of a smaller deficit in goods. The current-account deficit shrank to $130.4 billion from a revised $143.9 billion in the fourth quarter.