The NSE Nifty broke below the key 8,700-mark.
The 30-share BSE index dropped 50.61 points, or 0.18 per cent, to 28,091.03, with metal, auto, capital goods, IT and realty stocks feeling the squeeze.
The gauge had rallied 486 points yesterday, spurred by a series of market-friendly budget moves.
The NSE Nifty went below the 8,700-mark by falling 21.20 points, or 0.24 per cent, to trade at 8,695.20.
A weak trend in Asia came as a dampener, traders said.
Hong Kong's Hang Seng was down 0.52 per cent while Japan's Nikkei shed 0.25 per cent in early trade today. Chinese market is closed for a public holiday.
The US Dow Jones Industrial Average, however, ended 0.14 per cent higher yesterday.
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