Reuters Market Eye - The Nifty marked a fresh record high on Tuesday but retreated to trade in the red on profit taking.
The 50-share index was down 0.63 percent at 8,476.90 as of 1:35 p.m. after rising to a record of 8,535.35.
The 30-share BSE Sensex fell 0.35 percent.
ICICI Bank was down 2 percent, while Larsen & Toubro fell 1.97 percent.
Also weighing on sentiment was the Securities and Exchange Board of India's (SEBI) announcement on Monday that it was revising the rules for offshore derivative instruments to bring them in line with new foreign investment norms.
Shares in Power Grid Corporation of India were 3.1 percent lower on continued worries of exclusion from MSCI indexes.
(Reporting by Abhishek Vishnoi)