Equity benchmarks Sensex and Nifty buckled under selling pressure on Thursday as investors pared exposure to banking, IT and finance stocks after three sessions of gains amid the US Fed's hawkish stance on interest rates.

A weak opening in European markets and the depreciating rupee also sapped risk appetite, traders said.

After rallying for the past three days, the 30-share BSE Sensex fell 310.88 points or 0.49 per cent to settle at 62,917.63. During the day, it tumbled 357.43 points or 0.56 per cent to 62,871.08.

The NSE Nifty declined 67.80 points or 0.36 per cent to end at 18,688.10.

Wipro was the biggest loser in the Sensex pack, slipping nearly 2 per cent, followed by IndusInd Bank, State Bank of India, Kotak Mahindra Bank, ICICI Bank, HDFC Bank, Infosys, Tata Consultancy Services, HDFC and Bajaj Finserv.

On the other hand, Nestle, Mahindra & Mahindra, ITC, HCL Technologies, Asian Paints and Maruti were among the gainers.

In Asian markets, Seoul and Tokyo ended lower, while Shanghai and Hong Kong settled in the green.

Equity markets in Europe were trading on a mixed note. The US markets ended mixed in the overnight trade on Wednesday.

The US Federal Reserve kept its key interest rate unchanged Wednesday after having raised it 10 straight times to combat high inflation. But in a surprise move, the Fed signalled that it may raise rates twice more this year, beginning as soon as next month.

Global oil benchmark Brent crude climbed 0.97 per cent to USD 73.91 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,714.72 crore on Wednesday, according to exchange data.

The BSE benchmark had climbed 85.35 points or 0.14 per cent to settle at 63,228.51 on Wednesday. The Nifty advanced 39.75 points or 0.21 per cent to end at 18,755.90.

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