New Delhi, Nov. 27 -- The Indian stock market pulled back sharply after touching record highs, as pressure at higher levels brought the frontline indices to settle with only modest gains. Both indices began the session on a firm note, taking cues from Wall Street, and registered fresh record highs for the first time in 14 months.

The Nifty 50 touched a peak of 26,310 before closing with a marginal gain of 0.03% at 26,233. The S&P BSE Sensex also hit a record high of 86,055, but profit booking in banking stocks trimmed the gains, and the index settled with a mild rise of 0.02% at 85,704.

Sentiment remained in favor of bulls amid rising expectations of a US Federal Reserve rate cut in December, the return of overseas investors, improving ...