Sensex ends 80 points lower, Nifty below 9,580; TCS top loser

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.

The S&P BSE Sensex settled at 31,075, down 80 points, while the broader Nifty50 ended at 9,578, down 40 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices 

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,383 shares rose and 1,261 shares fell. A total of 174 shares were unchanged.

The global risk factors come at a time when domestic 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%.

Sectors and stocks

All but two sectors (Nifty Realty, Nifty Pharma) ended in red. 

Nifty IT index (down 0.8%) was the leading sectoral loser, led by losses in TCS, HCL Tech and Just Dial.

Nifty PSU bank index, which rallied late on Wednesday, was down 0.6%. 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.

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.

Aurobindo Pharma rallied 6% to Rs 639 on the BSE after the company said it has received final approval from the USFDA to manufacture Sevelamer Carbonate oral suspension, 0.8 gm and 2.4 gm. 

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.

Global markets

Stocks fell in Europe and Asia on Thursday as investor concern over the pace of US economic growth overshadowed a widely telegraphed rise in Federal Reserve interest rates that lifted the dollar off recent lows.

US stock futures signalled a rocky start on Wall Street after Wednesday's rate hike and another tumble in tech stocks.

The pan-European STOXX 600 index dropped 0.5 percent, led lower by the basic resources and oil and gas sectors, as the stronger dollar weighed on metals prices.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.7% led by resource shares.

Japan's Nikkei fell 0.3%.

Worries that policy tightening measures will weigh on China's growth, kept Chinese stocks in check. The blue-chip CSI300 index fell 0.2% while the Shanghai Composite Index added 0.1%.