The BSE Sensex came off seven-month highs ton Thursday after logging its biggest single-day fall in three weeks, mirroring global caution ahead of the US Fed meet and hit by an IT sell-off after Infosys flagged volatility issues for the next few quarters. The index plunged 257.20 points or 0.95 per cent to crack below the 27,000-mark.
There were also concerns that the recent gains in crude oil prices could adversely impact India's fiscal deficit situation and increase fuel price inflation.
“The market tanked as weak European cues and surge in oil price have turned investors risk averse,” said Vinod Nair Head of Research Geojit BNP Paribas Financial Services.
India’s second-largest software services firm Infosys was the worst performer with a plunge of 4.27 per cent at Rs1,185.45 after the company said challenges in retail, energy and insurance sectors could result in ‘quarterly bumps’. TCS followed suit and slumped 1.27 per cent to Rs2,577.50.