FIIs have offloaded shares of Bajaj Corp, Nestle, Jyothy Laboratories and Britannia.
The NSE Nifty too lost 41.20 points, or 0.36 per cent, to finish at 11,429.50.
On a weekly basis, the Sensex scored a moderate gain of 76.57 points, or 0.22 per cent while the Nifty rose 8.75 points, or 0.08 per cent.
The broader 50-issue NSE Nifty too slipped from its record high, shedding 10.30 points or 0.09 per cent to end at 11,346.20.
The NSE Nifty settled the day 28.30 points, or 0.27 per cent, lower at 10,554.30.
The benchmarks logged the first weekly loss in three weeks.
The NSE Nifty closed lower by 44.55 points, or 0.39 per cent, at 11,234.35. Intra-day, it shuttled between 11,332.05 and 11,210.90.
The broad-based NSE Nifty hit a low of 10,979.30 intra-day, managed to end above the 11,000-level at 11,027.70, down 21.95 points, or 0.20 per cent.
The broader NSE Nifty, after slipping below the 10,500-mark to hit a low of 10,477, finally concluded 29 points, or 0.27 per cent, down at 10,524.
The BSE Sensex, after scaling a new intra-day high of 32,699.86 in early trade on sustained buying by DIIs and other participants, succumbed to profit booking and closed the day at 32,609.16, down 24.48 points or 0.08 per cent.
Among Sensex constituents, HCL Tech suffered the most by diving 2.26 per cent, followed by HDFC shedding 2.10 per cent.
The broader Nifty, after struggling, also managed to end above the 10,200-level.
The NSE Nifty after shuttling between 10,408.65 and 10,224 points, ended 58.30 points, or 0.57 per cent, lower at 10,245.25.
The broader NSE Nifty dropped by 48.65 points, or 0.45 per cent to 10,808.05 after shuttling between 10,773.55 and 10,833.70.
Other gainers include ONGC, Bajaj Auto, Kotak Bank, TCS, Tata Steel, Axis Bank, Maruti, HDFC and HUL, surging up to 3.03 per cent.
Sentiment took a hit after the country's trade deficit soared to a near five-year high of $18 billion in July.
In the Sensex pack, Yes Bank, Tata Motors, Bajaj Finance, Tata Steel, HDFC twins, IndusInd Bank, RIL, Asian Paints, Hero MotoCorp, Axis Bank, M&M, HUL, Bajaj Auto, NTPC, HCL Tech, Kotak Bank and Infosys fell up to 5.30 per cent.
The NSE Nifty, after shuttling between 10,698.35 and 10,587.50, finished the session 91.50 points, or 0.86 per cent higher at 10,684.65.
This is its biggest single session gain since April 5, when it had surged 577.73 points.
Brokers said investor sentiment turned choppy on selling by foreign institutional investors ahead of the September month derivatives expiry on Thursday.
The broader 50-issue NSE Nifty slipped from its record closing, shedding 2.30 points or 0.02 per cent to end at 11,132.00.
The Nifty too slipped below the psychologically important 11,000 mark.
It is impossible for anyone to explain how markets are hitting record highs during an economic recession. It is both mysterious and surreal, notes Debashis Basu.
The broader NSE Nifty touched a high of 10,638.35 before settling at 10,584.70 -- up 20.65 points
The broader NSE Nifty ended the session at 10,714.30, up 125.20 points or 1.18 per cent, after shuttling between 10,723.05 and 10,612.35.
The broader NSE Nifty, after cracking the 10,600-mark, ended 82.30 points, or 0.77 per cent, lower at 10,589.10.
The 50-issue NSE Nifty too cracked below the 11,400-mark and hit a low of 11,311.60, before finishing 102.65 points, or 0.90 per cent down at 11,354.25.
The broader NSE Nifty climbed 61.60 points, or 0.58 per cent, to close at 10,772.05.
The broader NSE Nifty also settled lower by 23.10 points, or 0.19 per cent, at 11,922.80.
Among the Sensex constituents, Larsen and Toubro emerged as the top performer with a gain of 2.76 per cent after the company announced winning large contracts from domestic clients.
Top gainers in the Sensex pack include Yes Bank, TCS, Infosys, IndusInd Bank, HCL Tech, Bharti Airtel, HDFC, Sun Pharma, Bajaj Auto, ICICI Bank, Vedanta, Hero MotoCorp, ITC, Bajaj Finance, M&M and Tata Steel, surging up to 3.24 per cent.
The broader 50-issue NSE Nifty edged up just 0.10 points to close at 10,806.60
Investors turned cautious after India's trade deficit widened to a more than three-and-a-half-year high of $16.6 billion due to costlier crude oil imports
Top losers include Hero MotoCorp, HDFC, SBI, Infosys, HCL Tech, ICICI Bank, Bajaj Finance, ONGC, Bajaj Auto and IndusInd Bank, falling up to 2.63 per cent.
For the week, the Sensex recorded a gain of 131.39 points, or 0.38 per cent; while Nifty gained 38.75 points, or 0.37 per cent.
Investor sentiment got a big push after Brent crude, the international benchmark, dropped below the USD 73-mark to quote at a seven-month low of USD 72.65 by falling 3.48 per cent, traders said.
In the Sensex pack, Hero MotoCorp, IndusInd Bank, Bajaj Auto, Maruti and M&M were the top gainers, spurting up to 2.66 per cent.
The NSE 50-share index, after moving between 10,572.20 and 10,546.20, ended at 10,565.30, up 39.10 points, or 0.37 per cent.
Covering-up of short positions by speculators ahead of September month expiry in the derivatives segment on Thursday also helped the market stage a smart rally.
The broader NSE Nifty reclaimed the key 10,100-mark and touched a high of 10,155.65, before finally settling at 10,124.35