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Markets take a breather: Sensex falls over 100 points at 37,381 to snap six-day record run, Nifty slips ahead of RBI policy outcome tomorrow

Mumbai: The benchmark Sensex slipped from life highs to fall over 100 points to 37,381.05 today as markets took a breather after six consecutive record-setting sessions.

Weak trend in other Asian markets, muted earnings, and fresh foreign capital outflows weighed on investor sentiment here.

The overall market mood was cautious as investors were on a wait-and-watch mode ahead of RBI policy outcome, scheduled tomorrow, and profit-booking at record level, brokers said.

The 30-share Sensex, after rising to 37,534.95 points in early trade, turned negative and retreated from record high by losing 113.55, or 0.30 per cent, to 37,381.05.

The gauge had gained 998.03 points in the previous six sessions.

The broader Nifty also slipped from record high by falling 35.40 points, or 0.31 percent, to 11,284.15.

 Markets take a breather: Sensex falls over 100 points at 37,381 to snap six-day record run, Nifty slips ahead of RBI policy outcome tomorrow

Representational image. Reuters.

Major losers were HDFC, Vedanta, Tata Steel, ICICI Bank, ITC, Tata Motors, Wipro, Kotak Bank, TCS, HDFC Bank, Infosys, SBI and Coal India, falling up to 1.14 percent.

Sectoral indices led by metal, tech, IT, infrastructure, FMCG, banking, PSU, capital goods and oil and gas stocks were trading in the negative zone.

Foreign portfolio investors (FPIs) sold shares worth a net of Rs 234.04 crore, while domestic institutional investors (DIIs) bought shares worth a net of Rs 48.58 crore yesterday, provisional data showed.

Asian shares were trading lower after Wall Street posted losses amid weakness in the technology sector.

Japan's Nikkei shed 0.39 percent, Hong Kong's Hang Seng was down 0.56 percent, while Shanghai Composite index fell by 0.03 percent in early trade today.

The US Federal Reserve's Federal Open Market Committee, meanwhile, was due to begin its own monetary policy meeting today, with a decision due on Wednesday. The Fed is expected to keep rates steady at the end of its meeting.

Dow Jones Industrial Average ended lower by 0.57 percent in yesterday's trade.

Rupee falls against US dollar

The rupee declined two paise to 68.69 against the US dollar in early trade today due to month-end dollar demand amid weakness in the domestic equity market.

Traders turned cautious ahead of the RBI monetary policy committee's (MPC) meet outcome, scheduled tomorrow.

Increased month-end demand for the American currency from importers and banks amid fresh foreign fund outflows also weighed on the rupee.

On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 234.04 crore yesterday, as per provisional data.

Forex dealers said the rise of yen against the greenback as investors braced for the highly-anticipated policy decision later in the day from the Bank of Japan, capped the rupee's fall.

Yesterday, the rupee fell 2 paise to 68.67 against the US currency to end its three-session gaining streak.

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Updated Date: Jul 31, 2018 10:21:01 IST