BENGALURU, Feb 28 Reuters Indian bluechip index Nifty 50 posted its biggest drop in five weeks on Wednesday and small and midcaps stocks also declined as investors booked profits ahead of key U.S. and domestic economic data.

The benchmark index NSE Nifty 50 settled 1.11 lower at 21,951.15, while the BSE Sensex shed 1.08 to 72,304.88.

They have shed 1.2 this week after gaining nearly 2 in the past two weeks, during which the Nifty hit recordhigh levels.

Bouts of profitbooking will continue at these levels, said Anita Gandhi, founder and head of institution at Arihant Capital Markets.

Globally, investors39; focus is now squarely on U.S. inflation data on Thursday, which comes amid a sharp pullback in expectations of deep and early U.S. interest rate cuts.

On the same day, data is expected to show India39;s growth likely moderated to 6.6 in the OctoberDecember quarter. A robust macroeconomic outlook, sustained domestic inflows and healthy corporate results have fuelled the Nifty39;s recent rally.

India39;s monthly derivatives expiry is also on Thursday and Gandhi expects that to add to the markets39; volatility, which is hovering near 10month highs.

The broader, more domesticallyfocussed small and midcaps lost about 2 each.

Multiple asset managers are stopping taking in funds in the segments, while the market regulator has sought more disclosures from funds, said Samrat Dasgupta, CEO of Esquire Investment Advisors.

All the 13 major sectors logged losses….