Indian benchmark indices started Friday's trade on a weak note, as worries that the US economy may slip into recession amidst fears of an escalation in the US-China trade war weighed on investor sentiment.

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But hopes of a relief package from the government to address the slowdown capped losses in domestic equities.

The BSE Sensex was down 206 points, or 0.55 percent, to trade at 37105.50 in initial trade, while the NSE Nifty50 slipped over 73 points, or 0.66 percent, at 10,956. The Nifty MidCap index under-performed front line peer with the index down 0.83 percent.

Financial and money markets were closed on Thursday on account of Independence Day.

Among the sectoral gauges, the banking index, Nifty Bank slipped 0.91 percent, followed by metal, auto, media and telecom indices.

Among the index gainers, Yes Bank rose 2 percent, while ONGC, Bajaj Finance, Sun Pharma and HDFC increased by up to 0.52 percent.

Yes Bank shares surged 2 percent after the private sector lender said it raised Rs 1,930 crore via QIP.

Meanwhile, the rupee opened lower

against the US dollar on Friday on the back of the strength in the American unit. The home currency opened at 71.37 against the greenback from its Wednesday’s close of 71.27.

Also, catch all the latest updates and developments from the stock markets today with CNBCTV18's Market Live blog.