The BSE benchmark Sensex on Monday fell from two-year high by 93 points on emergence of profit-booking in recent star performers amid a weak global trend.
Ending the four-day rally, the Sensex closed 92.66 points down, or 0.47 per cent, to 19,691.42 led by stocks of capital goods and realty, while a rise in auto and metal stocks capped the losses.
The Index had gained 358 points in the last four trading sessions.
The wide-based National Stock Exchange index Nifty lost 27.75 points, or 0.46 per cent, to 5,988.40.
Brokers said the market remained under pressure as cautious investors indulged in profit-booking from recent star performers, while energy stocks rose on expectations of hike fuel prices.
They said a weakening trend in the Asian region and lower opening in Europe led investors to reduce their positions before any technical correction.
Market participants adopted a wait-and-watch policy before the beginning of the earning season, with second most heavy Infosys coming out with earning results on January 11, they added.
In 30-BSE index components, 19 stocks decline with most heavy Reliance Industries lost 0.65 per cent to Rs. 855, Larsen and Toubro by 2.35 per cent to Rs. 1,589.45 and ITC by 1.13 per cent to Rs. 279.20.
On the other hand, falling trend was cushioned as Infosys gained 1.12 per cent to Rs. 2,374.70 on expectations of better quarter earnings this week. Maruti Suzuki surged by 2.59 per cent to Rs. 1,584 after CLSA upgraded the stock. Oil and Natural Gas Corp also rose by 1.04 per cent to Rs. 287.70.
The capital goods sector index suffered the most by 1.47 per cent to 10,932.88 followed by FMCG index by 1.05 per cent to 5,822.33. Consumer durables, realty, bank and power sectors were also fell while metal, healthcare, auto, oil and gas and IT sectors gained.