Sensex dips from records, sheds 194 pts

Besides, selling pressure emerged across other sectors later in the day, after a morning surge pushed the Sensex past the 20,000 level for the second consecutive day.

However, the index failed to close above this milestone even today.

Real estate stocks, including DLF and Unitech, defied the overall selling pressure and saw their market value grow.

Snapping its six-day winning streak, the 30-share Sensex settled at 19,783.51, down 194.16 points from previous close.

NSE8217;s Nifty also hit a new record high of 5,971.70 before ending down by 37.15 points at 5,868.75.

A high level of volatility was seen on the bourses with the Sensex swaying 543 points between the day8217;s high and low levels. After a broadly positive trend in early trade, investors resorted to profit booking after RBI announced mid-day that cash reserve ratio will be hiked by 0.5 per cent to 7.5 per cent from November 10.

The central bank, however, left key short-term lending and borrowing rates as well as the bank rate unchanged.

The central bank8217;s concerns were also reflected in a statement by Finance Minister P Chidambaram that India faces a problem of huge capital inflow and needs appropriate regulations as well as risk management systems to avoid any potential shocks.