Profit booking in realty, oil and gas, capital goods, power and metal stocks pulled the index down to the day's low of 25,347.33 points.
The S&P BSE Sensex ended up 129 points at 26,843 and the Nifty50 ended up 39 points at 8,220.
US stocks rose more than 1% on Tuesday, with the S&P 500 coming less than 2% below its record peak set last month.
The Sensex ended down 251 points at 27,351 and the Nifty shed 65 points to close at 8,228.
With commodity markets remaining soft and uncertain, it is likely the money will flow into equity markets with strong upsides, such as India.
Of the 30-share Sensex pack, 22 ended with losses while NTPC ended flat at Rs 127.30.
Auto, pharma, IT, chemicals among sectors with significant reliance on UK and European nations with Tata Motors, Motherson Sumi, Tata Steel, TCS, Wipro, Infosys and Tech M among key names.
In Friday's market rally post the corporate tax cut, the country's top business promoters recouped more than two-thirds of the losses that they suffered in the post-Budget sell-off in equity markets.
While some companies used that to become world leaders, others squandered it by over-borrowing.
The broader NSE Nifty closed below the 10,600 mark by plunging 98.15 points, or 0.84 per cent, to 11,582.35 after shuttling between 11,567.40 and 11,751.80.
Sensex falls at close; metals, banks perform well.
Aviation companies were in focus with all the three airliners SpiceJet, InterGlobe Aviation and Jet Airways adding in the range of 2% to 3% on the BSE
A weaker rupee could aid corporate earnings through its positive impact on export intensive sectors such as information technology services, pharmaceuticals and commodity producers such as metal and mining, and oil and gas companies.
Investors booked profit ahead of the outcome of the two-day US Fed policy meet which begins today.
The top gainers on the Sensex were Cipla, Bharti Airtel, Maruti Suzuki, Hero Moto & Sesa Sterlite.
Auto stocks Hero MotoCorp and Mahindra & Mahindra gained 1-2 per cent on the back of strong sales in the month of September.
The Sensex ended below 28,000 for the second straight day at 27,869.
Most of the session's gains for both the indices were wiped out as investors rushed to book profits ahead of F&O expiry on Thursday and also due to concerns over stretched valuations.
Benchmark share indices ended lower for the third straight session as investors turned cautious amid tensions in Iraq even as consumer durables shares stole the limelight tracking rally in gold prices.
Sensex ended up 190 points at 25,519 and Nifty climbed 57 points to end at 7,626.
Historically, it is only the third time funds raised through IPOs has crossed the Rs 10k-crore mark
Sensex gained over 100 points and ended at 26147.33 while the Nifty ended 27 points higher at 7,795.75.
Sensex was up 184 points at 25,580 and the Nifty added 71 points to end the day at 7,654
Participants are eyeing the Bihar elections.
The broad-based NSE Nifty rose 52.80 points, or 0.50 per cent, to end at 10,530.70
The BSE Mid-Cap index was currently up 0.83%. The BSE Small-Cap index was currently up 0.8%.
Metal stocks fell on Tuesday, with the S&P BSE metal index sliding 2.8 per cent compared to the 0.64 per cent fall in the benchmark S&P BSE Sensex
BSE auto index surged 2%, capital goods, healthcare and oil & gas indices also up.
Asian markets were trading mixed with shares in China witnessing profit taking after sharp gains in the previous session.
ITC, Sun Pharma, HDFC and Coal India were among the top gainers.
The breadth, indicating strength of the market was strong
The 30-share Sensex ended higher by 31 points at 26,591 and the 50-share Nifty gained 10 points at 8,061.
market rally, especially in mid-caps, has also been driven by a pick-up in the monsoon and the government's resolve to get the goods and services tax (GST) Bill cleared in the recent session of Parliament.
Sensex witnessed the biggest single day gain since May 2009 in absolute terms.
A fall presents an opportunity to buy rate-sensitive stocks.
Jindal Steel and Power was the top loser down 10% followed by Hindalco, Tata Steel, Tata Power which ended down between 0.5-3% each.
A declining rupee, elevated crude oil prices and sustained foreign fund outflows added to the gloom
The NSE 50-share Nifty spurted 97.25 points, or 0.92 per cent, to 10,715.50
A steep decline in the Asian equities after crude oil fell to its lowest since September 2003 dented sentiments.
Axis Bank emerged as the biggest gainer in the Sensex pack, surging 6.62 per cent, followed by SBI at 5.88 per cent.