Lower trend at other Asian markets following a tepid lead from the Wall Street prompted participants to trim their holdings.
Sentiments suffered a jolt after retail inflation climbed to 7-month high in October, dampened hopes of a cut in interest rates by the Reserve Bank at its upcoming policy meet early next month, brokers said.
The BSE Sensex after a better start at 32,990.03, quickly regained the key 33,000-mark to hit a high of 33,126.55 on value-buying at select counters and recovery in the rupee at the outset.
However, emergence of selling at every rise wiped off initial gains and the index finally settled 91.69 points, or 0.28 per cent down at 32,941.87, its weakest closing since October 26.
The broader 50-issue NSE Nifty dropped 38.35 points, or 0.38 per cent, to close at 10,186.60 after shuttling between 10,248 and 10,175.55.
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