The barometer, in morning trade, crossed the 22,000 level for the second time in as many days but later succumbed to profit booking in bluechips lead by Reliance Industries, HDFC Bank and Tata Steel.
The 30-share index settled at 21,826.42 points, down by 108.41 points, or 0.49 percent, from the previous close.
Buoyed by nearly 1,000-point rally in the previous five sessions, the Sensex breached the 22,000 level for the first time on Monday but closed at 21,934.83, still an all-time high.
Similarly, the Nifty of National Stock Exchange rose to a high of 6,562.85 points during the day, but later closed down by 25.35 points, or 0.39 percent, at 6,511.90.
Reports of dip in export and imports and a weak trend in European markets on slowing growth in China hit the market sentiment, brokers said.
After recording positive growth for seven consecutive months, exports contracted by 3.67 percent in February although the trade deficit showed a marked improvement mainly on account of a significant decline in gold imports.
Profit booking at higher levels after the five-day rally also influenced the sentiment, they said.
Among 30-BSE index components, 18 stocks declined. Tata Steel, Reliance Industries, HDFC Bank and Mahindra and Mahindra posted losses up to 5.52 percent. Maruti Suzuki, Sun Pharma, Coal India, Bajaj India, ITC and Dr Reddy's Lab were also among losers.
Bucking the trend, stocks of Tata Power, Reliance Infra and Reliance Power gained. The metal sector index suffered the most by losing 3.44 percent followed by healthcare index by 0.99 percent.
The auto index lost 0.64 percent and capital goods index by 0.64 percent.


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