Sensex drops 53 points in volatile trade amid weak global cues; metal stocks shine, IT falters

, , and led the gains on the Sensex, climbing 2.5% to 3.7%. However, Nestle India, Maruti, IndusInd Bank, and ICICI Bank were among the top losers on the index.

IT companies, which earn a significant share of their revenue from the US, closed 0.2% lower, on worries about staying higher for longer after Federal Reserve officials maintained a cautious view on inflation.

Meanwhile, in on Tuesday touched 22.3, a 23-month-high, ahead of on June 4 and amid persistent foreign selling.

Among individual stocks, closed 10.6% lower after it reported higher-than-expected losses for the March quarter compared with profits in the previous quarter.

The of all listed companies on BSE surged by Rs 2.23 lakh crore to Rs 414.58 lakh crore ($4.97 trillion). Moreover, during the day's trade, the market capitalisation of all listed companies on BSE hit the $5 trillion mark for the first time ever.

Expert Views

“Weak Asian and European cues kept the mood sluggish in the domestic market through the trading session. Investors are trading with caution in the run up to the poll outcome and are keeping their equity exposure limited," said Prashanth Tapse, Senior VP (Research) at Mehta Equities.

Deepak Jasani, head retail research at HDFC Securities, said, "The sideways move continues, and could now face resistance in the 22,578-22,775 band while 22,198 could offer support in the near term."

Global Markets

Asian stocks drifted lower while the dollar held firm on Tuesday as investors awaited minutes of the Federal Reserve's latest policy meeting to gauge the timing and extent of possible interest rate cuts this year.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.9%, weighed down by the Hang Seng's 1.9% pullback from Monday's multi-month peak.

The blue-chip FTSE 100 fell 0.4% to 8,386 points and was set for its biggest percentage drop in more than a month. The mid-cap FTSE 250 also dropped 0.4%.

Oil Falls

Oil prices extended losses on Tuesday, with investors expecting lingering US inflation to keep interest rates higher for longer, depressing consumer and industrial demand.

Brent crude futures fell 64 cents, or 0.7%, to $83.07 a barrel by 0845 GMT. U.S. West Texas Intermediate crude (WTI) slipped 64 cents, or 0.8%, to $79.16.

Rupee Ends Slightly Higher

The Indian rupee closed marginally stronger on Tuesday despite weakness in most Asian currencies, with traders broadly expecting the rupee to see range-bound price action ahead of the outcome of India's national elections.

The rupee ended at 83.3050 against the US dollar, slightly higher than its close at 83.3350 on Friday.

(With inputs from agencies)