Markets recorded their biggest single-day fall since August 1 amid growth concerns in the euro zone.
Market breadth is positive with 942 advances and 196 declines.
The benchmark Nifty rallied 1,000 points or 17% from 7,000 in 78 trading sessions since May 12, till date to surpass the 8,000 mark.
The Sensex ended below 28,000 for the second straight day at 27,869.
Sensex closed 63.82 points higher at 26,851.05 in Muhurat trading; Nifty rises 18.65 points to end at 8,014.55.
Notable losers were ONGC, Axis Bank, ITC, SBI, ICICI Bank, NTPC, Hero Motocorp, Sun Pharma and Bharti Airtel who fell by up to 2.80 per cent.
Sensex ended strong, Tata Steel, HUL climb higher.
Index heavyweights Reliance Industries, HDFC and Infosys were the top Sensex gainers.
As regards India, market valuations already reflect most positives.
The broader markets are trading inline with the larger peers with BSE Midcap and Smallcap indices up 1.5% each.
KV Kamath has had a tough journey so far.
The 30-share Sensex lost 12 points to end at 29,559 and the 50-share Nifty climbed 4 points to close at 8,914.
RBI's fifth bi-monthly monetary policy meet due tomorrow also kept the investors on their toes.
Sensex ended above 26,000 led by telecom shares amid TRAI's spectrum sharing norms.
'The focus is more on the outlook for global growth'.
India's credit and banking are neither too big nor too small.
The market breadth in BSE remains positive with 1,554 shares advancing and 1,196 shares declining.
