Benchmark share indices ended lower on profit taking after they touched record highs in the previous session.
Sensex lost 76 points to end at 25,589 while Nifty shed 23 points to end at 7,649.
Investors accumulated quality stocks at valuable and attractive levels.
Banks led the decline with Nifty Bank and BSE Bank index dropping over 3% each.
The 30-share Sensex ended up 248 points at a record closing high of 27,346.
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.
Markets recovered in late trades, amid firm European cues, led by rebound in financials and gains in IT shares.
The 30-share Sensex ended down 414 points at 25,481 and the 50-share Nifty slipped 119 points at 7,603.
Benchmark share indices ended at record closing highs, amid a volatile trading session on Monday, with IT majors leading the gains.
Markets surged on hopes that the exit polls would show that the BJP winning majority in the general elections.
Index heavyweights Reliance Industries, HDFC and Infosys were the top Sensex gainers.
Investors booked profits at higher levels despite the growth oriented Budget.
Several Sensex stocks hits 52-week low in intra-day trade on Monday with financials leading the decline.
FIIs pump in Rs 2,075 crore in past three trading sessions.
Sensex ended above 26,000 led by telecom shares amid TRAI's spectrum sharing norms.
The 30-share Sensex gained 321 points to end at 26,430 and the 50-share Nifty surged 100 points to end at 7,879.
Sensex seems to be under pressure on weak cues.
The Sensex ended in red on domestic concerns.
Asia has opened largely in the green ahead of a raft of Chinese data due during the day.