The BSE benchmark Sensex ended the session down by about 15 points at 28,163.29 after hitting a life-time high of 28,282.85.
Similarly, the NSE index Nifty closed 5 points down at 8,425.90.
Among BSE sectoral indices, capital goods index gained the most by 1.61 per cent, followed by India infrastructure index 1.48 per cent, power 1.33 per cent and metal 0.99 per cent. On the other hand, IT index was down 0.75 per cent, followed by realty 0.6 per cent, consumer durables 0.54 per cent and oil & gas 0.3 per cent.
SSLT, L&T, BHEL, Bharti Airtel and Tata Steel were the top five Sensex gainers, while the major losers were Sun Pharma, HDFC, Hindalco, ONGC and TCS.
European stocks were trading higher on Tuesday, adding to the previous session's rally sparked by comments from ECB President Mario Draghi that raised the prospects of further stimulus steps.
Investors were also betting on Germany's ZEW survey for November, due at 1000 GMT, to start showing some signs of a stabilisation and reverse 10 straight months of declines.
Stoxx 50 was up 24.80 points or 0.81 per cent at 3,084.79, FTSE 100 gained 17.60 points or 0.26 per cent to 6,671.97 and CAC 40 climbed 14.09 points or 0.33 per cent to 4,240.19.
Draghi had said on Monday that the ECB stimulus is gaining traction but should it turn out that its current efforts are not sufficient to accelerate the euro zone recovery, the central bank is ready to do more.
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