The markets plunged on account of heavy selling in scrips across sectors.
RIL was the biggest gainer in the Sensex pack, rising 2.63 per cent, followed by NTPC, Axis Bank, Tata Steel, PowerGrid, HDFC twins, Bharti Airtel, M&M, ICICI Bank, SBI and Bajaj Finance -- gaining up to 2.51 per cent.
Investors booked profits after strong 641-point rally in the previous two sessions, brokers said.
Gains in key IT, capital goods, healthcare and metal stocks, after consistent buying by domestic and foreign investors, helped both the key indices to scale new peaks.
The NSE Nifty ended 89.40 points, or 0.83 per cent, lower at 10,710.45.
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
The bear market has lasted 10 months and the Nifty is down by over 20 per cent from its all-time peak of 9,119 in March 2015.
After a sharp sell-off in the past two months, overseas investors were once again seen turning bullish on Indian equities. FIIs bought shares worth Rs 63.5 billion in the past five sessions, their highest weekly investment tally in many months.
Investors will keenly watch US Fed meet starting Tuesday
The 50-share NSE Nifty too closed down 168.30 points, or 1.58 per cent, at 10,498.25 -- a level last seen on January 3 when it closed at 10,443.20.
The S&P BSE Sensex ended down 371 points at 24,966 and the Nifty50 closed 101 points lower at 7,615.
The Nifty rose by 32.40 points to 6,135.85, after touching the day's high of 6,187.75.
NTPC was the top gainer among the Sensex stocks, rising by 3.53 per cent. Coal India, ONGC and Sun Pharma also rose up to 2.41 per cent.
Kotak Bank was the top laggard in the Sensex pack, shedding over 2 per cent, followed by ITC, PowerGrid, M&M, HDFC, Asian Paints and NTPC. On the other hand, Maruti rallied over 4 per cent. Bharti Airtel, Axis Bank, IndusInd Bank and Bajaj Finance were also among the gainers.
BSE Bankex, Healthcare, Capital Goods and Consumer Durables ended higher.
The Sensex posted its biggest single-day jump in over a decade at 1,921 points and investors' wealth soared by a staggering Rs 6.8 lakh crore after Finance Minister Nirmala Sitharaman delivered a surprise cut in corporate tax rates on Friday.
The Sensex ended 107 points higher at 19,799 today, and has gained around 560 points in the last three days.
The Sensex took just five trading sessions to surpass the 36,000-level milestone, from 35,000.
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.
The European indices, including the FTSE, CAC and DAX, had trading in a directionless manner in the middle of the day.
'There is a weak link between the economy and the stock market.'
The IT index had a cracker of a time to spurt around 2% and emerge as the leading gainer on the BSE.
The weekly inflation had surged over 18%, as per the recently announced data. The Central Bank is scheduled for a policy review on January 25.
All sectoral indices on the BSE and NSE ended in the red, led by realty, banking, metal, pharma, pharma and financial stocks.
Markets ended a volatile session of trade higher as metal shares joined global rally after China avoided the path of raising policy rates.
The session was marked by volatility and stock-specific action, even as the overall sentiment remains risk-averse, brokers said.
Wipro rose the most, up 3.12 per cent, ahead of its board meeting to discuss buyback of shares.
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.
Top laggards in the Sensex pack included HDFC, ICICI Bank, TCS, HCL Tech, Kotak Bank, Asian Paints, TechM and HUL, dropping up to 2.67 per cent.
After touching a fresh all-time low against the US dollar on Thursday, the rupee jumped 27 paise to end at 68.46.
Metals bucked the trend and shone across the board.
Markets exhibited weakness throughout the day on negative cues from Asian and European markets. Weakness in banking stocks, along with metal and realty saw the markets extend losses in late noon trades.
