Key benchmark indices were trading lower in early trade amid negative cues from Asian market. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 106.98 points or 0.30% at 35,822.66. The Nifty 50 index was down 28.30 points or 0.26% at 10,763.25.

Among secondary barometers, the BSE Mid-Cap index was down 0.28%. The BSE Small-Cap index was down 0.22%.

The market breadth, indicating the overall health of the market, was negative. On BSE, 324 shares rose and 533 shares fell. A total of 32 shares were unchanged.

Overseas, Asian shares declined on Friday after China reported economic data that missed expectations. China on Friday reported industrial output and retail sales growth for the month of November. Industrial output in November grew 5.4% from a year ago. That figure was 5.9% in October. Retail sales rose 8.1%, down from 8.6% in October. Fixed asset investment rose 5.9% from January to November. It rose 5.7% from January to October.

In Japan, confidence among Japan's big firms remained unchanged from three months ago, a closely-watched central bank survey showed, but sentiment on the outlook soured for the first time in three quarters as trade frictions and global growth concerns hurt the business mood. The tankan's headline gauge of big manufacturers' sentiment stood at plus 19, unchanged from three months ago. The index for non-manufacturers rose to plus 24 from plus 22 in the September survey.

In Europe, the European Central Bank (ECB) on Thursday said it is bringing to an end a crisis-era bond-buying program this month. Bond purchases by the ECB will fall from 15 billion euros ($17.04 billion) a month to zero by the end of December, but the central bank plans to spend cash from maturing bonds to purchase additional debt. The ECB also left benchmark interest rates unchanged.

US stocks closed mostly lower after making small moves in and out of positive territory Thursday as investors continued to fret over the lack of clarity and progress in US-China trade talks.

On the data front, the Labor Department announced Thursday that initial jobless claims fell in the week ended December 8 by 27,000 to 206,000, easing fears that layoffs have been steadily rising. Further, the government also said that US import prices fell 1.6% in November, their largest decline in three years, led by the falling cost of oil.

Back home, Indian Oil Corporation was down 2.62%. The company's board approved buyback of equity shares of the company not exceeding 29.76 crore equity shares being approximately 3.06% of the total paid up equity share capital of the company at Rs 149 per share for an aggregate consideration not exceeding Rs 4435 crore on a proportionate basis through the tender offer route. The board of directors also declared an interim dividend of Rs 6.75 per share for the financial year 2018-19. The company has fixed 25 December 2018 as the record date for the purpose of ascertaining the eligibility of shareholders for payment of interim dividend as well as for buyback of equity shares. The announcement was made after market hours yesterday, 13 December 2018.

Adani Enterprises was down 0.51%. Adani Defence Systems and Technologies, a wholly owned subsidiary of Adani Enterprises has acquired stake in Alpha Design Technologies (ADTL). ADTL was established in 2003 for the design, development and manufacture of defence electronics and avionics. The announcement was made after market hours yesterday, 13 December 2018.

NMDC was down 1.34%. The company reported iron ore production of 18.76 million tonnes and iron ore sales of 19.30 million tonnes up to the month of November 2018. The announcement was made after market hours yesterday, 13 December 2018.

Dilip Buildcon was down 1.29%. The company said that DBL Rewa Sidhi Highways, wholly owned subsidiary of the company has received the financial closure from the National Highways Authority of India and has declared the financial closure of the SPV on 5 October 2018. The announcement was made after market hours yesterday, 13 December 2018.

Indian Energy Exchange was up 4.05%. The company has scheduled a board meeting on 20 December 2018 to consider share buyback proposal. The announcement was made after market hours yesterday, 13 December 2018.

On the political front, the Congress party has reportedly chosen senior leader Kamal Nath, 72, as its chief minister in Madhya Pradesh.