The blue-chip Nifty (.NSEI) index was down 0.27% at 18,775.30 as of 12:57 p.m. IST, while the benchmark S&P BSE Sensex (.BSESN) fell 0.24% to 63,235.07.

Both the indexes had risen 0.30% earlier in the session, with the Nifty 50 coming within 10 points of the previous record high of 18,887.60.

Eight of the 13 major sectoral indexes declined with high weightage financials (.NIFTYFIN) losing 0.3%.

Broader peers outperformed their benchmarks, with midcaps (.NIFMDCP100) rising over 0.6% to a fresh record high and smallcaps (.NIFSMCP100) hitting an over one-year high.

“There is nervousness in domestic equities near record high levels due to concerns over high valuations and monsoons,” said G Chokkalingam, founder and head of research at Equinomics Research Pvt.

“While positive triggers such as slide in inflation, fall in crude oil prices and strong macroeconomic fundamentals are in place for a sustained rally, monsoon rains could decide the near-term trajectory of the benchmarks.”

Among individual stocks, Larsen & Toubro (LART.NS) rose 2.24% to a new record high and was the top Nifty 50 gainer after brokerage Macquarie reiterated its “buy” rating, citing a strong growth outlook after the company emerged as the lowest bidder for a major order to build a bullet train.

On the other hand, Hero MotoCorp (HROM.NS) lost over 2% and was among the top Nifty 50 losers. The two-wheeler maker’s shares have fallen for four sessions in a row on a probe by the country’s corporate affairs ministry into the alleged diversion of funds.

Meanwhile, global equities were mostly lower on caution ahead of China’s rate decision on Tuesday and U.S. Federal Reserve Chair Powell’s congressional testimony on Wednesday and Thursday.