The broader 50-issue NSE Nifty dropped 38.35 points, or 0.38 per cent, to close at 10,186.60
The rupee is trading weak against the dollar in afternoon trade.
The stock was the worst hit among Sensex and Nifty components.
Wipro rose the most, up 3.12 per cent, ahead of its board meeting to discuss buyback of shares.
The Sensex took just five trading sessions to surpass the 36,000-level milestone, from 35,000.
The Sensex gained 7,430.37 points, or 27.91 per cent, this year.
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Forex traders said a stronger dollar also dragged the rupee down.
Market breadth depicted strength. There were almost 3 gainers against every loser on BSE
The Nifty closed at 10,335.30, down 28.35 points, or 0.27 per cent.
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The market breadth, indicating the overall health of the market, turned negative from positive
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The BSE Midcap also cut all its intraday gains to shed 0.3% at close
It, however, was a record-smashing week for both the indices, which scaled their lifetime highs.
A widening probe by US authorities involving top drug companies following complaints of price fixing of generics was a point of worry for the participants, said analysts.
The S&P BSE Sensex ended the day at 28,226, up 85 points, while the Nifty50 settled at 8,734, up 18 points.
Nifty saw the biggest weekly gain since the first week of September and comfortably maintained its crucial 8250 levels in today's session
It was an extremely volatile session, borne out by the Sensex swinging over 1,200 points through the day and the Nifty 369 points.
The 50-issue NSE Nifty in range-bound movements settled higher by 59.15 points, or 0.58 per cent, at 10,252.10.
The 50-share NSE Nifty settled lower by 76.05 points, or 0.88 per cent, at 8,615.25
On BSE, 1,826 shares declined and 982 shares rose, while a total of 194 shares were unchanged
The benchmark Sensex gained 4,642.84 points, or 16.%, while the broader NSE Nifty surged 1,572.85 points, or 18.20% during this period.
There were more than three losers against every gainer on BSE
On BSE, 1,469 shares fell and 1,200 shares rose. A total of 190 shares were unchanged.
Nifty PSU bank index dropped nearly 2%
Broader market outperformed with the S&P BSE Midcap index adding 0.7%, while S&P BSE Smallcap index gained 0.6%.
This is its biggest single session fall since August 24, 2015, when it had lost 1,624.51 points.
With rate cut expectations running high ahead of RBI meet this week, risk appetite improved especially in rate sensitive stocks
Coal India was the biggest gainer on both Sensex and Nifty
Benchmark share indices ended flat amid lack of investor participation even as gains in IT majors ahead of their second quarter earnings helped capped downside.
At the close, the 50-share NSE Nifty was at 8,611.15, up 19.90 points, or 0.23 per cent, after moving between 8,637.15 and 8,555.20.
TCS, Power Grid and Infosys are among the top S&P BSE Sensex gainers
The Nifty rose 176.50 points, or 1.74 per cent, during the week.
Of the 30-share Sensex pack, 15 today closed in the red
The S&P BSE Midcap and the S&P BSE Smallcap indices under-performed to lose 0.8% and 1.6%
The Nifty PSU Bank pared losses to end flat after falling as much as 1.05%
The NSE Nifty too recovered over 100 points, or 0.96 per cent, to end at 10,576.85.
The sentiment-driven rally also got support from stock specific earning results and Finance Minister Arun Jaitley's statement that the Centre will step up reforms to attract more investment and fill up infrastructure deficit.
The broader Nifty also succumbed to the pressure before recovering to close lower by 6.35 points, or 0.07 per cent at 8,693.05