The 30-share Sensex ended down 35 points at 26,349 and the 50-share Nifty ended down 20 points at 7,864.
Markets shrugged off RBI's neutral stance on key policy rates.
The top gainers on the Sensex were Cipla, Bharti Airtel, Maruti Suzuki, Hero Moto & Sesa Sterlite.
HDFC and Infosys contribute the most to today's rally.
Sensex hit a record high of 27,225.85 and Nifty hit a record high of 8,141.90 in the intra-day trades today.
For the seven months since February 2014, the benchmark index surged nearly 27%.
The 30-share Sensex ended 117 points higher at 26,560 and the 50-share Nifty gained 31 points to end at 7,936.
Metal stocks lose ground with Hindalco, Tata Steel, Sesa Sterlite down 4-10%.
Markets extended gains for the fourth consecutive day tracking gains in banks, capital goods and oil and gas majors.
Sensex ended up 190 points at 25,519 and Nifty climbed 57 points to end at 7,626.
Tata Steel, SBI, Infosys and L&T were among the top gainers for the day.
Sensex gained nearly 0.4% or 96 points at 26087 level while Nifty ended up by 42 points or 0.5% at 7,791.40 level.
Infosys, Wipro and HUL among the top losers for the day.
Markets will remain closed today on account of voting for the general elections in Mumbai constituencies.
Shares of Multi Commodity Exchange of India (have tanked over 11% to Rs 428 on back of heavy volumes on the bourses.
Bank Nifty has recovered nearly 300 points at 10,968 from intra-day low of 10,669 touched in early morning deals.
Markets snapped two-day losing streak and ended flat with a positive bias on Tuesday as gains in auto shares helped offset losses in IT majors.
IT majors along with metal names Sesa Goa and Hindalco buck trend.
DLF, Indiabulls Real Estate, HDIL, YES Bank, Union Bank of India and Maruti Suzuki are down 4-12% on NSE.
Banking shares are down up to 11% after the Reserve Bank of India has increased the policy repo rate by 25 basis points from 7.25% to 7.5% with immediate effect.