Investors also remained wary ahead of the US Federal Reserve's two-day meet starting Tuesday, coming at a time of continued tensions between Russia and the West over Ukraine.
The Nifty lost 0.32 per cent, or 21.50 points, at 6,761.25, marking its lowest close since April 16 and retreating from a record high of 6,869.85 hit on Friday.
The Sensex fell 0.25 per cent, or 56.46 points, to 22,631.61, its lowest close since April 17, and below its all-time high of 22,939.31 hit on Friday.
Larsen & Toubro ending down 1.6 per cent after gaining 4.7 per cent over the previous two weeks. Housing Development Finance Corporation lost 1.1 per cent.ACC fell 1.8 per cent, adding to Friday's 2.73 per cent drop, while Ambuja Cements India closed 4.3 percent lower after slumping 4.4 per cent in the previous session on continued disappointment over their quarterly earnings last week.
Bharti Airtel fell 1.2 per cent on caution ahead of its January-March earnings due on Tuesday.
However, Fulford India, a domestic subsidiary of Merck & Co Inc, jumped 20 per cent to its maximum daily limit, after it approved a delisting offer from its parent company.
Agrichemicals and pesticides firm UPL ended higher 20 percent after marking its highest level since its demerger from Uniphos Enterprises in January 2004.