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India's benchmark indexes declined on Friday and are set for weekly losses, as investors remained jittery ahead of a crucial U.S. jobs report that could determine the size and speed of the Federal Reserve's interest rate cuts.

The Nifty 50 index fell 0.93% to 24,904.1 points, while the S&P BSE Sensex lost 0.96% to 81,410.13, as of 10:11 a.m. IST.

The Nifty hit a record high at the start of the week but has shed about 1.3% so far this week as recent U.S. economic data raised fears that the Fed has perhaps waited too long to lower rates.

"Markets are on edge ... ahead of a busy macro calendar in the coming weeks, including the U.S. jobs report, and the Federal Reserve's interest-rate decision," said Vikram Kasat, head of advisory at PL Capital at Prabhudas Lilladher.

Worries over a slowdown in the U.S. labour market re-emerged after data showed soft job openings overall and fewer job gains in the private sector, raising expectations of a 50-basis-point rate cut when the Fed meets on Sept. 17-18.

The U.S. non-farm payroll report for August, due after Indian markets close, will give more clarity on the health of the labour market.

On the day, all the 13 major sectors dropped. The more domestically-focussed small- and mid-caps fell 1% and 1.3%, respectively.

Among individual stocks, State Bank of India, the country's largest state-owned lender, lost about 3% after Goldman Sachs downgraded the stock to "sell" from "neutral", citing rising headwinds to growth, margins and credit costs.

SBI was the top Nifty 50 loser in percentage terms and dragged state-owned lenders 1.5% lower.

LTIMindtree rose 2% after Morgan Stanley upgraded the stock to "overweight" from "equal-weight", calling it its most preferred stock in the IT sector, citing a steady growth outlook and attractive valuations.