The market opened with sharp gain at 25,706.35 and reached an all-time new high of 25,711.11 before succumbing to profit-booking.
This led to a low of 25,347.33 before quoting at 25,439.27 at 1005 hours (IST), losing 140.94 points.
The NSE 50-share Nifty also fell by 46.70 points to 7,607.90.
Major losers were SSLT (3.79 pct), Hindalco (3.21 pct), Tata Power (2.95 pct), BHEL (2.91 pct), Tata Steel (2.64 pct), ONGC (2.12 pct), NTPC (1.93 pct), GAIL (1.53 pct) and L&T (1.34 pct).
Asian stocks rose after record close of US stocks over economic optimism.
Key benchmark indices in Taiwan, Hong Kong Indonesia, South Korea and China were up 0.29 to 0.78 per cent, while indices in Japan and Singapore fell 0.31 to 0.44 per cent.