Markets ended their 5-day winning streak with the Sensex finishing down by 166 points to 37,104, and the Nifty dropping 55 points to 10,981, breaching its key level of 11,000.
Data regarding key economic indicators IIP and CPI will be released later today.
The European Central Bank will also meet today amid expectations that it might kick off another wave of monetary policy easing by central banks.
Sectorally, Nifty Auto and FMCG lost the most, while banking and pharma indices ended slightly higher.
Today's top losers were Yes Bank (-5%) and Tata Motors (-4%), while the top gainers included Indiabulls HF (+3.5%) and Ultratech (+2.5%).
On the Nifty, 15 stocks advanced and 35 stocks declined on Thursday.
India Vix ended at 14.88, lower by 3.19%.
The rupee was trading at 71.73/$ giving up the day's gains.
Meanwhile, Asian markets ended mixed with the Nikkei 225 gaining 0.75%, the Shanghai Composite up 0.75%, and the Hang Seng losing 0.26%.