Indian shares snapped a three-session winning streak to end lower on Thursday, tracking Asian peers, a day after the US Federal Reserve raised interest rates and struck a more hawkish tone in forecasting a slightly faster pace of tightening.
The Fed raised its benchmark overnight lending rate by a quarter of a percentage point to a range of 1.75 percent to 2 percent and forecast two additional hikes by the end of this year, compared with one previously. The broader NSE index ended 0.45 percent lower at 10,808.05, while the benchmark BSE index closed 0.39 percent weaker at 35,599.82.
The Nifty IT index ended 1.5 percent lower, after marking six sessions of gains. The index was pulled down by Infosys Ltd, which closed 2 percent lower.
ICICI Prudential Life Insurance Co Ltd dropped as much as 2.9 percent after ICICI Bank Ltd said it would sell a 2 percent stake in the insurer.
Oberoi Realty Ltd dropped as much as 3.6 percent after the real estate developer said it would offer shares to institutional investors.
Meanwhile, shares of Ruchi Soya Industries Ltd, which has been undergoing an insolvency resolution process since December, climbed 4.7 percent to hit their upper price limit after the edible oil producer said its committee of lenders declared Adani Wilmar Ltd as top bidder for the company.
"People are a bit nervous because of the Fed's hawkish tone and since the Fed may increase the pace of tightening. Moreover, there is an overhang from the European Central Bank (ECB) policy as all these central banks are on the reverse course now," said Saurabh Jain, AVP - Research, SMC Global Securities.
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