MUMBAI (Reuters) - 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.
(Reporting by Karen Rebelo and Abhishek Vishnoi; Editing by Anand Basu and Subhranshu Sahu)