Benchmark indices dropped in trade, led by banking stocks, after a rise in Inflation data for April, left investors worried that the Reserve Bank of India (EBI) may hold interest rates steady in June.
The Sensex was trading with losses of 180 points, while the Nifty lost 50 points in trade. Shares in Havells India jumped almost 5 per cent after the company was added to the MSCI India index.
Yes Bank and Bajaj Finance also saw buying interest after being added to the MSCI India index. Shares in Bank of Maharashtra were trading lower, following a poor set of quarterly numbers reported by the bank.
Most of the other PSU banking stocks were lower on worries that the RBI may not cut interest rates anytime soon.
Vijaya Bank dropped after the bank reported a poor set of quarterly numbers. Zydus Wellness was down marginally, after the company's results managed to meet expectations.
Top losers from the Nifty were Dr Reddy's, Coal India, Tata Steel, NTPC and Lupin Laboratories. Meanwhile, markets across Asia were trading with losses, following poor closings across the Europe and the US.
The rupee too opened slightly weak at 66.78 to the US dollar. Check and convert currency rates here