However, gains in IT, FMCG and auto sectors capped losses to some extent.
Overseas, European shares were trading lower as investors reacted to corporate earnings, fresh turmoil for Turkey and continued fears of a trade war between the US and China. Most Asian stock markets dropped as trade and broader geopolitical concerns continue to weigh over investor sentiment.
The NSE Nifty lost 41.20 points, or 0.36 per cent, to finish at 11,429.50. It had ended at a record high of 11,470.70 yesterday. The Nifty had gained by 226.00 points or 1.99 per cent in its previous five days.
It saw an intra-day movement of about 59.10 points.
On the sectoral front, PSU bank stocks fell by 3.80 per cent followed by metal 1.91 per cent, pharma 1.21 per cent, energy 0.75 per cent, bank 0.69 per cent, media 0.67 per cent and financial service 0.59 per cent.
However, IT rose by 0.52 per cent, FMCG 0.31 per cent and auto 0.24 per cent.
Major index gainers were Eicher Motors, BPCL, Hind Petro, M&M and Hero Motoco.
Losers were SBI, GAIL, Sun Pharma, Tata Motors and Vedanta.
The market breadth, indicating its overall health, was in favour of losers. On the NSE, 622 stocks advanced, 1,183 declined and 88 remained unchanged.
Total securities that hit their price bands were 210.
Turnover in the cash segment fell to Rs 33,596.48 crore from Rs 34,903.22 crore yesterday.
A total of 16,331.46 lakh shares changed hands in 11,059,149 trades. The market capitalisation of listed firms on NSE stood at Rs 1,52,92,315 crore.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)