It is for the fourth successive day markets are closing in the negative terrain.
Brokers said a slew of factors such as weak global cues, anticipation of election results, prediction of below normal monsoon resulted in intense profit-booking in the fag-end.
Investors are also keenly awaiting the decision in US Federal Reserve's ongoing two-day monetary policy meeting.
The BSE Sensex opened better and surged 214 points to 22,680.46 on sustained capital inflows.
However, profit-booking emerged towards end of trading and the index shed all its gains to settle at 22,417.80, a loss of 48.39 points or 0.22 per cent from its previous close.
The last time the the Sensex closed at this level was on April 16, 2014.
The 50-share Nifty of NSE also moved down by 18.85 points or 0.28 per cent to finish at 6,696.40.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services, said: "Equity markets opened positive followed by the rupee appreciation. Asian markets were trading firm in the morning ... As the day progressed indices lost all its gain and closed weak. Investors traded watchful before the US Fed's policy meet outcome later in the day."
Rising for the second day, the rupee closed 11 paise higher against dollar at 60.31. The local currency had gained 23 paise yesterday.
Among the Sensex pack, 18 stocks closed in the red while others finished in the green.
Tata Power dipped by 3.52 per cent, BHEL 3.19 per cent, SSLT 2.78 per cent, Bharti Airtel 2.24 per cent, L&T 1.96 per cent, Hindalco 1.82 per cent, Coal India 1.70 per cent, Bajaj Auto 1.46 per cent, ICICI Bank 1.37 per cent, NTPC 1.23 per cent, Sun Pharma 1.22 per cent and Tata Steel 1.21 per cent.
Hero MotoCorp rose by 2.27 per cent, ONGC 1.81 per cent, Dr Reddy's 1.45 per cent, Tata Motors 1.30 per cent and HDFC 1.15 per cent.
Foreign Institutional Investors (FIIs) bought shares worth a net Rs 287.98 crore yesterday, as per provisional data from stock exchanges.
Among BSE sectoral indices, realty tumbled by 5.30 per cent, power 2.08 per cent, consumer goods 2.03 per cent and Metal 1.15 per cent.
The market breadth remained negative as 1,704 counters closed with losses, while 973 finished with gains. The total turnover shot up further to Rs 3,119.85 crore from Rs 2,865.42 crore yesterday.
Traders said operators and retail investors preferred to book profits ahead of a holiday tomorrow. The BSE and the NSE will remain closed tomorrow, May 1, on account of 'Maharashtra Day'.
Asian stocks ended showed a mixed trend. Key benchmark indices in China, Japan and Singapore rose by 0.11-0.83 per cent, while indices in Hong Kong, South Korea and Taiwan dropped by 0.15-1.42 per cent.
European markets lost ground in their early trade after sharp gains in the previous session as tensions in Ukraine continued to dog sentiment. Key indices in France and Gerrmany moved down by 0.04 per cent-0.31 per cent while UK's FTSE was quoted higher by 0.06 per cent.