Indian equity benchmarks retreated from all-time highs registered earlier in the day in a volatile session on Wednesday amid profit booking in IT and metal shares. The market made a U-turn in mid-morning deals soon after both Sensex and Nifty50 indices logged record highs, even as official data released the previous day showed India's GDP expanded 20.1 percent in the June quarter due to a low base.
Gains in consumer durables, real estate and PSU banking shares, however, somewhat aided investors' sentiment, keeping deeper losses at bay in the market.
The 30-scrip index fell 214.18 points or 0.37 percent to end at 57,338.21 -- 580.5 points below an all-time high clocked in morning, and the broader Nifty50 barometer slid to settle at 17,076.25, down 55.95 points or 0.33 percent from its previous close.
Both indices finished lower after two back-to-back record closing highs. The Nifty50 gauge put an end to a winning run that lasted seven trading sessions in a row.
The country's economy rebounded in the June quarter despite the second wave of the coronavirus pandemic, with growth driven by a rise in manufacturing and higher consumer spending.
Among blue-chip stocks, Mahindra & Mahindra, Cipla, Tata Steel, Hindalco, Bajaj Finserv, TCS, HDFC and Infosys -- closing between 1.72 percent and 2.96 percent lower -- were the top laggards.
On the other hand, Asian Paints, Tata Motors, SBI Life, Nestle, Axis Bank, Titan and Dr Reddy's -- rising between 1.16 percent and 3.10 percent -- were the top performers among 21 gainers in the Nifty50 universe.
Broader markets outperformed the headline indices, with the Nifty Midcap 100 and Smallcap 100 indices finishing the day 0.75 percent and 0.34 percent higher respectively.
Bank of India, NAM India, JSW Energy, Bajaj Electricals and Edelweiss, declining between 3.10 percent and 4.30 percent, were the top losers in broader markets. Exide, Prestige, Oberoi Realty, IEX and India Cements, finishing the day between 5.46 percent and 11.10 percent higher, were the top gainers.
Auto stocks were in focus as manufacturers released their monthly sales reports. Tata Motors rose 2.73 percent, TVS Motor 0.90 percent and Bajaj Auto 0.86 percent, Maruti Suzuki and Mahindra & Mahindra fell 0.86 percent and 2.89 percent respectively, and Ashok Leyland was flat.
"Despite favourable GDP data, domestic indices failed to hold onto their early gains due to profit booking... The auto sector showed a flattish trend as sales for August saw a decline following supply constraints," said Vinod Nair, Head of Research at Kochi-based brokerage Geojit Financial Services.
Overall market breadth was mildly negative as 1,513 stocks rose on BSE against 1,664 that fell.
Meanwhile, European markets started the day stronger amid rising hopes for more policy support. The pan European STOXX 600 index was last seen trading 0.70 percent higher. The UK's FTSE benchmark was up 0.68 percent, France's CAC up 1 percent and Germany's DAX up 0.27 percent.
S&P 500 E-Mini futures were up 0.30 percent, signalling a positive start ahead on Wall Street.