BENGALURU, Aug 29 Reuters Indian shares fell on Monday to close at their lowest in a month, weighed down by losses in information technology and banking stocks after U.S. Federal Reserve signalled aggressive rate hikes.

Fed Chair Jerome Powell39;s promise of policy pain to contain inflation quashed hopes that the central bank would soften its rate hike stance to prevent an economic slowdown. 

The NSE Nifty 50 index ended down 1.4 at 17,312.90, while the SP BSE Sensex dropped 1.5 at 57,972.62.

The IT index slumped 3.5, while the bank index fell 1.8.

The Indian rupee dropped to an alltime low versus the dollar on Monday on bets the Federal Reserve will keep a restrictive stance for longer, prompting the Reserve Bank of India to step in. 

Powell39;s speech comes at a time foreign investors were returning to Indian stocks after dumping them in the first half, as they look for higher returns amid expectations that major central banks will slow their rate hike cycle.

Investors had already got the wind of bearish undertone for the start of the week, after the U.S. Fed chairman39;s speech on Friday talked about further rate hikes going ahead to tame inflation, said Shrikant Chouhan, Head of Equity Research Retail, Kotak Securities.

Shares of fertiliser companies fell between 2 and 5 on Monday following a government announcement mandating companies availing subsidy, to market their products under a single brand.

Meanwhile, Reliance Industries Chairman Mukesh Ambani on…