Markets trade at day's low; Nifty below 9,600 on negative global cues

The benchmark indices extended losses in the afternoon trade as investors booked profits in recent outperformers, while soft US economic data, a relatively hawkish Federal Reserve and worries of political turmoil in the world's largest economy hurt sentiment.

At 2:28 pm, the S&P BSE Sensex was trading at 31,032, down 123 points, while the broader Nifty50 was ruling at 9,565, down 52 points. 

In the broader market, the S&P BSE Midcap was trading flat, while the S&P BSE Smallcap index added 0.4%.  

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,349 shares rose and 1,101 shares fell. A total of 126 shares were unchanged.

The Federal Reserve raised interest rates as expected on Wednesday and gave a first clear outline on its plan to reduce its $4.2-trillion portfolio of bonds.

The global risk factors come at a time when Indian markets are running short of triggers after a recent rally. Since hitting a record high of 9,709.30 points on June 6, the broader Nifty50 has fallen around 1%.

Nifty PSU bank index, which rallied late on Wednesday, was down 0.45%. Punjab National Bank fell as much as 3.49%, its biggest intraday percentage loss in over two weeks.

The Nifty PSU bank index had gained 16.6% this year as of Wednesday's close.

Nifty Pharma index rose 1.6% led by Aurobindo Pharma, up as much as 6.5%, on USFDA's approval for a drug treating chronic kidney disease.

The Central Bank of India shares slid as much as 3%, after the bank said on Wednesday that it is under RBI's 'corrective action' over high bad loans and negative return on assets.

Among gainers, Indigo-owner InterGlobe Aviation moved higher to its 17-month high of Rs 1,206, up 4.4% on the BSE in an otherwise subdued markets. The stock is trading at its highest level since January 2016.

Shares of shipping companies were in focus with Shipping Corporation of India (SCI) rallying 16% to Rs 92, also its 52-week high on the BSE in intra-day trade, after NITI Aayog proposed 26% strategic sale in the state-owned company.

Overseas, Asian shares were trading lower as investors took profits, after a muted reaction in US markets to the Federal Reserve's rate rise and plan to start shrinking its balance sheet. 

(With inputs from Reuters)