BENGALURU, Sept 21 Reuters India39;s benchmark indexes on Thursday closed at a twoweek low in a broadbased selloff, after the U.S. Federal Reserve signalled that interest rates will remain elevated for longer.

The Nifty 50 closed 0.8 lower at 19,742.35 points, its lowest close since Sept.7, while the SP BSE Sensex declined about 0.85 to 66,230.24 points.

Both the indexes fell for a third straight session on Thursday, losing as much as 1. They are also down more than 2 so far this week, after gaining 2 each and hitting alltime highs in the previous week.

The Fed39;s reiteration that the rates could remain higher for longer is a concern. That has kind of created negative sentiments for equity markets across the world, including India, said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

The Fed on Wednesday held key interest rates unchanged as widely expected, but warned that the battle against inflation was far from over.

Higher interest rates dry up liquidity from the markets, increasing the cost of capital.

Things are not that bad as macros have been pretty strong, earnings growth is decent in India … But there is some amount of cautiousness and profit bookingafter the Fed, added Khemka.

The benchmark indexes have climbed about 9 each so far this year, while the domesticallyfocussed midcaps and smallcaps have gained about 28 each.

The smallcap and midcap stocks fell 1.3 and 0.9 on Thursday, respectively.

Banking and auto…