Snapping its 10-session winning run, equity benchmark Sensex tumbled 264 points on Wednesday, dragged by losses in Reliance Industries, ITC and Infosys.
After touching its record intra-day high of 48,616.66 in early trade, the 30-share BSE index pared all gains to end 263.72 points or 0.54 per cent lower at 48,174.06.
Similarly, the broader NSE Nifty fell 53.25 points or 0.38 per cent to 14,146.25. It touched a record peak of 14,244.15 during the day.
ITC was the top laggard in the Sensex pack, shedding around 3 per cent, followed by Reliance Industries, Bajaj Finance, Axis Bank, HUL and HCL Tech.
On the other hand, PowerGrid, Bharti Airtel, ONGC and UltraTech Cement were among the gainers.
Domestic equities witnessed high volatility and corrected mainly on turning outcome of Georgia's run-off elections for two Senate seats in the favour of Democrats, said Binod Modi, Head-Strategy at Reliance Securities.
"Control of Senate by Democrats is likely to result in reversal of lower tax rates in the US, which may create certain volatility in the market," he said, adding that volatility index shot up sharply over 5 per cent at one point of time.
Further, profit-booking at record levels also dragged benchmarks lower, traders said.
Elsewhere in Asia, bourses in Shanghai and Hong Kong ended on a positive note, while Tokyo and Seoul were in the red.
Stock exchanges in Europe were trading firm in early deals.
Meanwhile, the global oil benchmark Brent crude was trading 0.99 per cent higher at USD 54.13 per barrel.