At 9:50 am, the Sensex traded 24.04 points - or 0.06 per cent - lower at 38,799.07, while the Nifty was down 14.55 points - or 0.13 per cent - at 11,568.35.

HDFC Bank, ITC and Larsen & Toubro weighed the most on Sensex, however advances in Reliance Industries, HDFC and NTPC limited the downside.

IT major Infosys and private sector lender IndusInd Bank will be reporting their earnings for the quarter ended June 30 later in the day.

The government is due to release data on consumer inflation (Consumer Price Index) and industrial production (Index of Industrial Production) at 5:30 pm.

Equities in other Asian markets pulled back on Friday amid renewed concerns over the US-China trade war, a day after US President Donald Trump said China was not living up to promises it made on buying agricultural products from American farmers. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.05 per cent in early deals, with Australian shares dipping 0.16 per cent and Japan's Nikkei stock index trimming 0.11 per cent.

Federal Reserve Chairman Jerome Powell indicated on the same day that a rate cut is likely at the US central bank's next meeting as businesses slow investment due to trade disputes and a global growth slowdown.

China will release its trade data for the month of June during the day. Analysts expect exports to have fallen as weakening global demand and a sharp hike in US tariffs took a heavier toll on the world's largest trading nation.

Overnight on Wall Street, the S&P 500 gained 0.23 per cent to end at a record closing high of 2,999.91 points and the Dow Jones Industrial Average per cent hit a record high close of 27,088.08 points, rising 0.85 per cent on the day. The Nasdaq Composite fell 0.08 per cent.