Indian stocks ended lower on Thursday on the final day of December derivative contracts expiry as investors booked profits in the recent outperformers ahead of the year-end holidays.
Asian shares rose to a one-month high, and were on track for their best annual performance since 2009. Trading volumes were, however, low ahead of New-Year holidays.
Japanese and Australian shares were little changed, while benchmarks in Hong Kong and Seoul were higher.
MSCI world equity index, which tracks shares in 47 countries, also held near record highs, Reuters data showed. It has surged 21.5 percent this year.
The S&P BSE Sensex fell 0.19 percent at 33,848 while the broader NSE Nifty shed 0.12 percent to 10,477.
Trading was volatile as investors rolled over their positions to January futures and options series.
Among the top Sensex laggards, State Bank of India lost 2 percent, Sun Pharma declined 1.6 percent, Hero MotoCorp lost 1.4 percent while Adani Ports dropped 1.4 percent.
DLF added 7 percent after its shareholders on Wednesday approved an issue of debentures and warrants to promoters in lieu of Rs 11,250 crore equity infusion into the company to reduce debt.
Reliance Communications jumped 9 percent. The stock has gained over 150 percent in the last seven trading sessions after the company announced a Rs39,000-crore debt resolution plan.
Kotle Patil Developers climbed 3 percent after the company signed Rs 193 crore agreement with KKR.
But Axis Bank fell 1 percent after the markets regulator on Wednesday asked the bank to conduct an internal inquiry into the suspected leak of its June-quarter financial results.
Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.