The broader NSE Nifty plunged 119.15 points, or 1.01 per cent, to 11,709.10.
Benchmark indices took U-turn from record high levels touched during early trade on Tuesday, with the BSE Sensex tripping nearly 383 points and the NSE Nifty shedding over 119 points as investors hurried up to book profits.
Intense selling was seen, barring initial hours, across sectors after market participants sensed that exit polls euphoria over BJP's likely win in the general election has already been factored in appropriately.
After hitting an intra-day record high of 39,571.73, the 30-share index ended 382.87 points, or 0.97 per cent, lower at 38,969.80.
The gauge hit the day's low of 38,884.85.
In a similar movement, the broader NSE Nifty plunged 119.15 points, or 1.01 per cent, to 11,709.10.
Tata Motors was the biggest loser in the Sensex pack, dipping 7.05 per cent, a day after the company posted a 49 per cent decline in March quarter profit.
Maruti, IndusInd Bank, M&M, Bharti Airtel, SBI, PowerGrid, Hero MotoCorp, Tata Steel, ICICI Bank, Infosys, Yes Bank and TCS too fell up to 3.25 per cent.
On the other hand, RIL, HUL and Bajaj Finance ended in the green, rising up to 1.08 per cent.
The broader BSE midcap and smallcap indices ended in the red in line with benchmarks, falling up to 0.84 per cent.
Traders believe that though a profit-booking emerged at higher levels but election rally may continue if the election results come as per exit polls prediction.
On Monday, the 30-share index skyrocketed 1,421.90 points, or 3.75 per cent, to 39,352.67, and the Nifty soared 421.10 points, or 3.69 per cent, to 11,828.25.
The rally came after a majority of exit polls forecast another term for Prime Minister Narendra Modi.
The results of the seven-phase polls will be announced on May 23.
Photograph: Danish Siddiqui/Reuters