The BSE benchmark Sensex was trading down by nearly 250 points as a drop in crude prices hurt the domestic sentiment and dragged down explorers such as Oil and Natural Gas Corp.

Besides, a weak trend in global markets as investors await the US non-farm payrolls data also influenced the domestic sentiment.

At 12.15 p.m., the 30-share BSE index Sensex was down 223.98 points or 0.74 per cent at 29,902.23 and the 50-share NSE index Nifty was down 64.6 points or 0.69 per cent at 9,295.30.

Among BSE sectoral indices, metal index fell the most by 2.75 per cent, followed by infrastructure 1.33 per cent, oil & gas 1.21 per cent and capital goods 1.04 per cent. Only consumer durables index was up 0.67 per cent.

Top five Sensex gainers were Asian Paints (+1.55%), State Bank of India (+0.57%), Maruti (+0.25%) and Dr Reddy's (+0.06%), while the major losers were Tata Motors (-3.72%), ONGC (-3.23%), Tata Steel (-2.51%), Axis Bank (-1.9%) and M&M (-1.61%).

Banks gained after TV channels reported Indian President Pranab Mukherjee had given his approval to a government ordinance that seeks to tackle non-performing loans in the sector. The government has yet to officially provide details.

The Nifty PSU bank index rose as much 2.35 per cent to its highest since March 4, 2015, with State Bank of India jumping more than one per cent and Canara Bank gaining around 7 per cent.

Banking stocks were seen carrying forward the positive sentiment arising out of the government’s decision to bring an ordinance to give greater powers to the Reserve Bank to tackle mounting bad loans.

“On a broader scale, when the markets reach a record high, it is natural to see investors becoming jittery and a little cautious. By the end of this earnings season, one will get a clearer picture on where the market is headed,” said Tirthankar Patnaik, India Strategist at Mizuho Bank.

Asian stocks are set for a third straight day of losses on Friday as a retreat in crude oil and other commodities prices knocked global sentiment, although receding concerns about France's presidential election kept the euro near six-month highs.

MSCI's broadest index of Asia-Pacific shares outside Japan opened flat on Friday. Japan and South Korea markets are closed for trading.