At the close, the benchmark 30-share index, BSE Sensex declined 57.09 or 0.19% at 29,365.30 with 21 components registering drop.
The Sensex ended 57 points lower at 29,365 while Nifty slipped 17 points to settle at 9,119.
In terms of investments, provisional data with the exchanges showed that the foreign institutional investors (FIIs) sold scrip worth Rs 978.34 crore, while the domestic institutional investors (DIIs) purchased stocks worth Rs 1,132.39 crore.
However, caution prevailed over the ongoing fourth quarter results season, coupled with mixed global cues and a marginally weak rupee. In the broader market, the S&P BSE Midcap index and the S&P BSE Smallcap index added 0.5% each.
Realty, power, capital goods, oil & gas and consumer durables closed higher by up to 2.37 percent.
Parentage claim over Dhanush: Madras HC quashes couple's case
The actor had time and again refuted their claims and the HC's judgment would surely come as a relief to him. They claimed that he had changed his screen name to Dhanush and failed to take care of them.
Top losers in the Sensex-30 pack: Sun Pharma (down 2.4 per cent), Cipla (down 1.8 per cent), ITC (down 1.8 per cent), Adani Ports (down 1.7 per cent) and Power Grid (down 1.4 per cent). "Broad market indices like the BSE mid-cap and small-cap indices ended with bigger gains thereby outperforming the Sensex".
Globally, US markets ended higher overnight amid revived hopes of tax cuts, while Bank of Japan said it will keep accommodative policy in place.
In other Asian markets, Japan's Nikkei was up 0.86 per cent while Hong Kong's Hang Seng rose 0.31 per cent in early trade today. China's Shanghai Composite Index gained 0.03 per cent.
Europe was in the grip of weakness in early session, with Paris CAC 40 falling 0.37 percent after the latest terror attack on the city, while Frankfurt's DAX slid 0.16 percent.
London's FTSE shed 0.17 per cent.