IT stocks weigh on Indian blue-chip shares after Fed’s hawkish pause

India’s blue-chip stock indexes snapped a three-day winning streak on Thursday after the US 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 (.NSEI) index closed 0.36% lower at 18,688.10, while the benchmark S&P BSE Sensex (.BSESN) 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 (.NIFTYIT), which get a significant share of revenue from the US, lost over 0.5% after the Fed kept rates unchanged, as expected, but signaled the need for borrowing costs to rise, reported Reuters.

On the other hand, the mid-cap index (.NIFMDCP100) hit a new record high, while the small-cap index (.NIFSMCP100) rose 0.15% to a fresh 52-week high.