Mumbai (Maharashtra) [India], September 22 (ANI): The Indian stock market's benchmark Sensex fell 337 points on Thursday after the US Federal Reserve hiked 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 closed 337.06 points or 0.57 per cent down at 59,119.72 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 Sensex rose to a high of 59,457.58 points in the intra-day.

The markets fell sharply 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 fell 88.55 points or 0.5 per cent to 17,629.80 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. HDFC Bank slumped 2.18 per cent to Rs 1485.70. Axis Bank dipped 2.09 per cent to Rs 789.10. ICICI Bank dipped 1.37 per cent to Rs 902.85. State Bank of India closed 0.42 per cent down at Rs 567.40.

The index heavyweight Reliance Industries Limited closed 0.93 per cent down at Rs 2485.90.

Power Grid Corporation, Bajaj Finserv, UltraTech Cement, HDFC, Kotak Bank, Tech Mahindra and Tata Steel were among the major Sensex losers.

Titan surged 2.80 per cent to Rs 2739.80. Hindustan Unilever jumped 2.64 per cent to Rs 2693.05.

Asian Paints, Maruti Suzuki, ITC, Dr Reddy's Laboratories, Sun Pharma, Bharti Airtel and MahindraMahindra were among the major Sensex gainers. (ANI)