Indian benchmark erased morning gains to end lower on Friday, as investors turned cautious ahead of the highly anticipated meeting between the US President Donald Trump and Chinese President Xi Jinping at G20 Summit over the weekend.

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Private banks and metal stocks led the losses in the domestic indices.

The Sensex ended 192 points lower at 39,395, while the broader Nifty50 index lost 53 points to end at 11,789. Meanwhile, in broader markets, the Nifty Midcap fell 0.4 percent, while the Nifty Smallcap index was declined 0.2 percent.

Asian shares also stumbled as uncertainty looms over whether the talks between the world's two biggest economies will produce progress in ending the year-long trade war between the two nations.

US President on Friday said he had not promised Chinese President a reprieve from escalating tariffs in a trade war that is casting a shadow on global growth, but felt their talks planned for the next day would be productive.

GAIL, Bajaj Finserv, Axis Bank, Bajaj Finance and Adani Ports were among the top gainers on the Nifty50 index, whereas, Yes Bank, Indiabulls Housing, Bharti Infratel, Coal India and Tata Motors led losses.

Sectoral indices ended mixed for the day. The Metal index lost the most, down 1.1 percent followed by the Nifty Private Bank (down 0.7 percent), the Nifty Bank (down 0.5 percent) and the Nifty Auto (down 0.5 percent). Meanwhile, the Nifty PSU Bank index rose 0.7 percent, whereas, the Nifty Realty gained around 0.5 percent.

PSU Banks gained the most after RBI's financial stability report stated that the share of the state-run banks in the overall NPAs was at an elevated 12.6 percent, but is likely to come down to 12 percent by March 2020. Union Bank of India, Punjab National Bank, Central Bank of India, Bank of India and Syndicate Bank rose between 2-5 percent.

However, private banks remained under pressure after the report said it estimates their gross NPA at 4.4 percent by March 2020 as against 3.7 percent in March 2019. Yes Bank slipped 3 percent, while IndusInd Bank was down over 2 percent. Kotak Bank, HDFC Bank and ICICI Bank were also in red during the day.

Shares of Dewan Housing Finance Corporation fell 11 percent after the company deferred its March-quarter earnings announcement date. They were earlier scheduled to announce earnings on June 29.

Cox & Kings' shares hit a lower circuit of 10 percent for the second consecutive day on Friday after the company said it has defaulted on the payment of commercial papers due to cash flow mismatch and a situation exacerbated by rating downgrade.

Reliance Capital fell 6.5 percent after reports that it is likely to defer the release of its fourth-quarter and full-year consolidated financial results which were scheduled to be announced today.

Globally, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.1 percent. Japan’s Nikkei stock index ended down 0.29 percent. Chinese blue chips fell 0.24 percent on Friday and Hong Kong’s Hang Seng lost 0.32 percent. Australian shares shed 0.71 percent.