Sensex slips from 11-month high ahead of Fed, BoJ meets

 Mumbai, Jul 26 (PTI) Market benchmark Sensex broke below the 28,000-mark today after sliding 119 points as investors booked profits in recent winners amid caution ahead of key meetings of central banks in the US and Japan.

The broader NSE Nifty also failed to maintain the key 8,600-level.

Shares of the country's largest carmaker Maruti Suzuki plunged 1.44 per cent to Rs 4,485.25 despite reporting a 23 per cent jump in profit for June quarter to Rs 1,486.2 crore.

Drug major Dr Reddy's Laboratories plummeted 4.37 per cent to Rs 3,322.85 after its consolidated net profit declined by 80 per cent to Rs 126.3 crore for the June quarter.

Offloading of positions by participants on upcoming July derivatives expiry on Thursday also influenced sentiment.

"With earnings season failing to sizzle so far and GST poised to face hurdles, stocks faced a confidence crunch and came off the lofty peaks seen yesterday," said Anand James Chief Market Strategist Geojit BNP Paribas Financial Services.

"With a string of firm US economic data and positive surprises on the earnings front, the chances of rate hike, though less likely in July, have also vastly improved, putting global equities under a cloud of caution ahead of FOMC rate decision," he added.

The US Federal Reserve is due to conclude a two-day meeting tomorrow and the Bank of Japan will meet on Friday.

On the day, the 30-share BSE Sensex after opening a shade higher at 28,121.37, slipped into the negative zone to touch a low of 27,927.13, before settling 118.82 points or 0.42 per cent down at 27,976.52.

The 50-issue NSE Nifty also dropped by 45 points or 0.52 per cent to end at 8,590.65 after shuttling between 8,644.90 and 8,577.15.

Broader markets, however, depicted a mixed trend with BSE small-cap index falling by 0.69 per cent and mid-cap gaining 0.17 per cent.

Overseas, Japan edged lower as expectations receded with regard to the government's soon-to-be announced fiscal stimulus package. The Nikkei 225 Average ended 1.43 per cent lower. Other Asian indices like China, Hong Kong, Singapore, South Korea and Taiwan firmed up by up to 1.14 per cent.

European markets were also mixed as indices in Germany and the UK moved up by up to 0.25 per cent, while France's CAC was down 0.22 per cent. .