Nifty slips after breaching 9,700 level for first time

By Tanvi Mehta

(Reuters) - The NSE Nifty edged down on Tuesday after earlier surpassing the 9,700-point level for the first time, as markets took a breather from a record-hitting spree a day before the central bank's policy meeting.

The Reserve Bank of India (RBI) is likely to keep interest rates unchanged at 6.25 percent at its review on Wednesday, but likely to sound less hawkish than the last monetary policy committee meeting, according to a Reuters poll.

Sentiment was also subdued after Asian shares fell amid a slew of risk factors, including escalating tensions in the Middle East, the coming testimony of the former FBI director, British elections and a European Central Bank meeting.

"Broader market is correcting as well," said Neeraj Dewan, director, Quantum Securities.

"There isn't any reason to be bullish right now."

The broader Nifty rose as much as 0.35 percent to a record high of 9,709.30, before reversing course and was down 0.09 percent at 9,666.45 as of 0608 GMT.

The benchmark Sensex also followed suit, opening at an all-time high of 31,420.85 and was last down 0.13 percent at 31,270.09.

ITC Ltd's shares fell as much as 2.6 percent in their biggest intraday percentage drop in over a month and were among the top percentage losers on the Nifty.

India Grid Trust fell as much as 6.3 percent in its debut due to a lack of investor familiarity with infrastructure investment fund.

But among gainers, State Bank of India rose as much as 2 percent to its highest in two weeks after a share sale to institutional investors to raise as much as $2.33 billion was fully covered within hours of the launch on Monday, sources told Reuters.

Adani Enterprises Ltd surged as much as 6.90 percent to its highest in one week, after the company gave final investment nod for the Carmichael coal mine and railway in Australia.

($1 = 64.3300 Indian rupees)

(Reporting by Tanvi Mehta in Bengaluru; Editing by Subhranshu Sahu)