Benchmark indices took a U-turn from record high levels touched during early trade on Tuesday, with the BSE Sensex tripping nearly 383 points and the NSE Nifty shedding over 119 points as investors hurried up to book profits.
On Monday, both the benchmarks Sensex and Nifty had seen their best single-session gains in 10 years in absolute terms -- rising 1,422 and 421 points, respectively. In percentage terms, indices had logged their biggest one-day gains in six years.
Starting off on a bullish note on Tuesday, the BSE Sensex marked its life-time high of 39,571.73 in the early trade and the NSE Nifty too hit its record high at 11,883.55 in opening deals.
However, an intense selling emerged across sectors as the session progressed after market participants sensed that exit polls euphoria over Narendra Modi-led NDA's likely win has already been factored in appropriately.
Sectorally, auto, telecom, metal, teck and banks were among the top losers.
In the Sensex pack, Tata Motors was the biggest loser, dipping 7.05 per cent, a day after the company posted a 49 per cent decline in March quarter profit.
Other major laggards were Maruti, IndusInd Bank, Bharti Airtel, Mahindra and Mahindra, PowerGrid, SBI and Tata Steel -- losing as much as 3.25 per cent.
On the other hand, RIL, HUL and Bajaj Finance ended in the green, rising up to 1.08 per cent.
After hitting an intra-day record high, the 30-share index ended 382.87 points, or 0.97 per cent, lower at 38,969.80. The gauge hit the day's low of 38,884.85.
In a similar movement, the broader NSE Nifty dropped 119.15 points, or 1.01 per cent, to settle the day at 11,709.10.
The broader BSE midcap and smallcap indices ended in the red in line with benchmarks, falling up to 0.84 per cent.
"Market gave up the gains after testing a new high as the positive sentiment on exit polls is gradually priced-in. Pre-election rally may continue if the election verdict comes in tandem with exit polls where quality mid and small caps will out-perform. Additionally, the downside risk in the market is likely to be protected in the near term supported by extension in economic reforms and pick up in earnings. On the other hand, the global peers are trading in a positive note with signs of ease in trade tensions," Vinod Nair, Head of Research, Geojit Financial Services, said.
The Monday's rally came after a majority of exit polls forecast another term for Prime Minister Narendra Modi. The results of the seven-phase polls will be announced on May 23.
Meanwhile, the Indian rupee fell marginally by 2 paise to close at 69.72 against the US dollar.
Brent crude, the global benchmark, was trading at 72.01 per barrel, higher by 0.04 per cent.
Globally, bourses in Asia ended on a mixed note, while those in Europe were trading in the green in their respective early deals.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)