Mumbai (Maharashtra) [India], September 22 (ANI): The Indian stock market's key indices, Sensex and Nifty, fell sharply on Thursday after the US Federal Reserve hiked policy interest rate by 75 basis points and signaled that the borrowing costs would be increased further in the coming months.

The 30 stock SP BSE Sensex was trading 151.04 points or 0.25 per cent down at 59,305.74 points against its previous day's close at 59,456.78 points.

Earlier, the Sensex started the day in the red at 59,073.84 points slumped to a low of 58,832.78 points.

The benchmark index is trading in the red for the third consecutive session. The Sensex had lost 262.96 points or 0.44 per cent on Wednesday.

The broader Nifty 50 of the National Stock Exchange was trading 51.55 points or 0.29 per cent down at 17,666.80 points against its previous day's close at 17,718.35 points.

The Nifty had lost 97.90 points or 0.55 per cent on Wednesday.

The stock markets slumped across the world after the US Federal Reserve on Wednesday increased its policy interest rate by 75 basis points. The Fed also raised its target interest rate by three-quarters of a percentage point to a range of 3 to 3.25 per cent.

Banking stocks witnessed heavy selling pressure. Axis Bank slumped 1.82 per cent to Rs 791.30. HDFC Bank fell 1.57 per cent to Rs 1494.95. ICICI Bank dipped 0.89 per cent to Rs 907.20. Kotak Bank fell 0.79 per cent to Rs 1903.

Power Grid Corporation, Bajaj Finserv, UltraTech Cement, Reliance Industries Limited and Wipro were among the major Sensex losers.

Hindustan Unilever jumped 2.50 per cent to Rs 2689.55. Asian Paints, Titan, ITC, Maruti Suzuki, Dr Reddy's Laboratories and Nestle India were among the major Sensex gainers. (ANI)