India’s blue-chip stock indexes snapped a three-day winning streak on Thursday after the U.S. Federal Reserve hinted at further interest hikes later this year, but the domestically oriented mid-cap index rallied to a fresh record high.
The blue-chip Nifty 50 index closed 0.36% lower at 18,688.10, while the benchmark S&P BSE Sensex lost 0.49% to 62,917.63. Both indexes are about 1% shy of their all-time highs.
Eight of the 13 major sectoral indexes declined. IT companies, which get a significant share of revenue from the U.S., lost over 0.5% after the Fed kept rates unchanged, as expected, but signaled the need for borrowing costs to rise.
On the other hand, the mid-cap index hit a new record high, while the small-cap index rose 0.15% to a fresh 52-week high.
The more locally focussed indexes have rallied strongly -the mid-cap index is up nearly 19.5% since its 2023-low hit in April- in the past few weeks, outpacing their blue-chip peers, as inflation eased, economic growth picked up and the central bank held interest rates.