The Sensex and Nifty edged lower, retreating from earlier gains as investors booked profits and as ICICI Bank slumped after posting disappointing results.
The broader NSE index fell 1.95 points or 0.02 per cent to 8,636.55, after earlier rising as much as 0.84 per cent to its highest level since April 16, 2015.
The benchmark BSE index lost 48.74 points or 0.17 per cent to end at 28,003.12, after earlier hitting its highest since August 10, 2015.
Among BSE sectoral indices, capital goods index fell the most by 2.34 per cent, banking 1.18 per cent, FMCG 0.52 per cent and PSU 0.22 per cent. On the other hand, IT index was up 1.76 per cent, TECk 1.54 per cent, metal 1.31 per cent and auto 0.47 per cent.
Top five Sensex gainers were TCS (+3.03%), Tata Steel (+2.71%), Maruti (+2.41%), Wipro (+2.33%) and Dr Reddy's (+1.62%), while the major losers were ICICI Bank (-5.19%), L&T (-4.12%), Adani Ports (-1.68%), Lupin (-1.00%) and State Bank of India (-0.7%).
ICICI Bank lost 5.2 per cent as its results fell short of estimates late on Friday. Other lenders also fell, with State Bank of India ending down 0.7 per cent.
GST hopes
Earlier, the Nifty hit a more than 15-month high on hopes the country's Upper House of Parliament could pass the long-awaited Goods and Services Tax (GST) Bill as early as this week.
The proposed tax reform, the biggest since India's independence from Britain in 1947, seeks to replace a slew of federal taxes and levies in 29 states, transforming the nation of near 1.3 billion people into a customs union.
Shares also tracked a rally in global markets as Asian stocks hit a one-year peak after disappointing US economic growth data reduced expectations that the US Federal Reserve will raise interest rates in the next few months.
“We can expect the momentum (in shares) to continue with progress of the GST Bill,” said Gaurang Shah, vice president, Geojit BNP Paribas Financial Services.
“Earnings unfolding will also be a key trigger for markets. With the positive impact of the monsoon and GST's progress, we are in for stable growth going forward.”
Sageraj Bariya of East India Securities said: "All asset classes have started moving up once again helped by expectations of delayed rate hike in US, weak dollar & good corporate earnings report. Global bond yields have fallen by ~ 10 bps and gold is back to $ 1350 mark. Asian currencies are rallying on weak dollar and global equities are all poised for new highs. Indian markets have much more to cheer for given the good coverage of monsoon and the prospects of GST becoming a reality soon. Also, borrowing costs likely to fall given the overall decline in interest rates."