Nifty posts biggest single-day fall in nearly four weeks.

 The Nifty fell about 1.5 percent on Thursday, its biggest single-day percentage drop in nearly four weeks, amid global risk aversion while Infosys declined on speculation that it may announce acquisitions which may weigh on its earnings.

Infosys shares fell 3.49 percent, weighing heavily on the Nifty. A company spokeswoman did not immediately offer comments. The IT services provider will make an announcement at 5 p.m., according to its website.

Equity markets, oil and emerging market currencies fell as fading expectations for an imminent U.S. interest rate hike following Federal Reserve meeting minutes stoked anxiety about the health of the global economy.

Selling was also seen in mid-cap and small-cap stocks, which have so far this year outperformed the broader market. The BSE MidCap index, which hit its record high last week, fell 2 percent.

"Midcaps and smallcaps were holding on since the last couple of days... But today we saw minor cracks and I think it can worsen," said Alex Mathews, head of research at Geojit BNP Paribas.

The Nifty fell 1.44 percent, its biggest single-day percentage fall since July 27, while the Sensex ended 1.16 percent lower.

Almost all sectors ended in the red, with the deep cuts seen in financial stocks. Only FMCG and healthcare stocks managed to hold out.

Among other bluechips, Reliance Industries fell 4 percent, ICICI Bank lost 2 percent and Larsen & Toubro shed 1.8 percent.

Meanwhile, Lupin rose 5.3 percent after the company received approval for a key anti-cholesterol drug from the U.S. FDA which was seen alleviating concerns over its Goa plant.

Sensex on crash course, cracks 324 points on global sell-off.

 The stock market found itself at the receiving end of a sharp global sell-off in equities and currencies on Thursday as the benchmark BSE Sensex tanked 324 points to end the day at 27,607.82.

Minutes of US Fed's July meeting suggested that the officials were in broad agreement that the economy is nearing a point which calls for a rate "lift-off", which added to the anxiety level.

European shares were ruling markedly lower over concerns about gloomy outlook of global economies.

The rupee fell to almost a two-year low of 65.50. Emerging market currencies fared no better as Turkish Lira and South African Rand went downhill.

Commodities took a blow as Brent fell 1.59 per cent to USD 46.41 in the global market. Metal prices too came under pressure and melt.

Positive comments from RBI Governor Raghuram Rajan that Indian economy is showing signs of a pick-up failed to lift mood.

The 30-share index resumed higher, but slid thereafter on intense selling, settling at 27,607.82, down 323.82 points, or 1.16 per cent.

As many as 26 in the Sensex pack ended with losses. The NSE Nifty slumped below the 8,400-level, tumbling 122.40 points, or 1.44 per cent, to close at 8,372.75.

This is Nifty's biggest single-day percentage fall since July 27. Intra-day, it hovered between 8,501.35 and 8,359.

"Sharp sell-off was witnessed across the globe after the release of FOMC minutes, which suggest that Fed can hike rate in September. Continuous fall in commodity prices, rupee weakness, sell-off by foreign portfolio investors and profit booking dampened sentiment of investors," said Gaurav Jain, Director, Hem Securities.

Vedanta took the maximum battering, which plunged 4 per cent, followed by Axis Bank.

RIL, BHEL, Tata Steel, GAIL, SBI and Infosys were among those which lost too.

Sector-wise, BSE realty index bore the brunt, down 4.13 per cent, followed by metal, banking, IT and PSU.

Earlier in the day, major Asian markets ended the day in the red. China's Shanghai Composite took a sharp fall of 3.42 per cent.

Meanwhile, foreign investors sold shares worth Rs 423.72 crore yesterday. 

Elsewhere in the region, Hong Kong, South Korea, Singapore
and Japan indices lost up to 1.77 per cent.

"India was outperforming other EMs in the last 2-3 months. We are likely to continue our outperformance, but the absolute return would be at risk. Due to increase in risks, investors are shifting their exposure to defensive sectors like pharma, IT and FMCG," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services.

Broader markets mid-cap and small-cap indices couldn't escape the selling pressure, which too were down by over 2 per cent.

Lupin stood out as it surged 5.39 per cent and so were ITC, Dr Reddy's and Sun Pharma.

The market breadth turned sharply negative as 2,072 stocks declined, 771 advanced while 100 ruled steady.

The total turnover firmed up to Rs 3,354.59 crore, from Rs 3,312.12 crore yesterday.