Sectorwise, the BSE Oil and gas index suffered the most by falling 1.32 per cent, followed by FMCG Index 0.70 per cent and Auto Index 0.56 per cent.

However, Healthcare index ended 2.93 per cent higher, Power index 0.73 per cent, Realty index 0.52 per cent and IT index 0.23 per cent.

Meanwhile, Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 559.39 crore yesterday, as per provisional data from the stock exchanges.

In Asia, most indices edged higher following a positive lead from Wall Street, where stocks picked up on encouraging US data before a keynote speech this week by Fed chief.

However, Europe's main stock markets dipped at the start of trading on Wednesday after two days of strong gains. London's benchmark FTSE 100 index fell 0.12 per cent and Frankfurt's DAX 30 edged down 0.05 per cent. The CAC 40 index in Paris also lost 0.10 per cent., Nifty retreat from highs as mkts log 1st drop in 7days

Mumbai, Aug 20 (PTI) In its first drop in seven days, the benchmark Sensex today retreated from record highs and ended 106 points down at 26,314.29 as investors booked gains in oil&gas, FMCG and capital goods scrips amid mixed global cues.

Losses in counters like ONGC, GAIL, RIL, SBI, Axis Bank, Mahindra and Mahindra, Maruti Suzuki, ITC and Larsen & Toubro mainly weighed on the market sentiment.

Bucking the general weak trend, pharma sector stocks such as Dr Reddys Lab, Ranbaxy Cipla and Sun Pharma ended higher -- providing investors some relief.