Domestic equities suffered sharp losses tracking weakness in global stocks. The barometer index, the S&P BSE Sensex, lost 306.33 points or 0.88% to settle at 34,344.91. The Nifty 50 index lost 106.35 points or 1.01% to settle at 10,430.35. Stocks across the globe fell as investors continued to assess potential trade tensions, the possible cancellation of a June summit with North Korea and a fall in commodity prices.

Shares of index heavyweight and cigarette major ITC dropped. Oil & gas stocks declined. Metal shares edged lower.

After opening on a positive note, the market declined as the session proceeded. Indices hovered in a range with small losses in mid-morning trade. Indices pared losses in early afternoon trade. Selling aggravated in late trade.

The barometer index, the S&P BSE Sensex, lost 306.33 points or 0.88% to settle at 34,344.91, its lowest closing level since 18 April 2018. The Sensex rose 17.23 points, or 0.05% at the day's high of 34,668.47 in early afternoon trade. The index fell 348.35 points, or 1.01% at the day's low of 34,302.89 in late trade.

The Nifty 50 index lost 106.35 points or 1.01% to settle at 10,430.35, its lowest closing level since 11 April 2018. The Nifty fell 3.15 points, or 0.03% at the day's high of 10,533.55 in early trade. The index fell 118.90 points, or 1.13% at the day's low of 10,417.80 in late trade.

Among secondary barometers, the BSE Mid-Cap index fell 0.24%. The BSE Small-Cap index fell 0.47%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,110 shares rose and 1,544 shares fell. A total of 123 shares were unchanged.

Dr. Reddy's Laboratories (down 2.92%), IndusInd Bank (down 2.8%) and Adani Ports and Special Economic Zone (down 1.8%) were the major Sensex losers.

State Bank of India (up 3.56%), NTPC (up 0.82%) and Larsen & Toubro (up 0.55%) were the major Sensex gainers.

Index heavyweight and cigarette major ITC lost 1.92% to Rs 273.45.

Metal shares edged lower. Tata Steel (down 6.57%), Vedanta (down 6.23%), Hindustan Zinc (down 1.66%), Hindalco Industries (down 2.53%), National Aluminium Company (down 3.68%), NMDC (down 0.22%), Sail (down 5.32%), JSW Steel (down 2.49%) and Jindal Steel & Power (down 5.93%) edged lower. Hindustan Copper (up 2.33%) rose.

Drug major Cipla rose 1.6% after the company reported consolidated net profit of Rs 153.25 crore in Q4 March 2018 as compared with net loss of Rs 62.79 crore in Q4 March 2017. Consolidated total income rose 3.69% to Rs 3737.98 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 22 May 2018.

The board of directors of the company approved raising funds upto Rs 2000 crore by issue of equity shares or American depository receipts or global depository receipts or foreign currency convertible bonds or other securities /financial instruments, whether denominated in Indian Rupee and/or foreign currency(ies), though a public issue or a private placement.

The board of directors of the company also approved raising funds upto Rs 2000 crore by issue of non-convertible debentures (in form of bonds or otherwise) or bonds, whether denominated in Indian Rupee and/or foreign currency(ies), though a public issue or a private placement.

Umang Vohra, MD and Global CEO, Cipla said that in this financial year, the company's focus remained on strengthening our portfolio and deepening presence in priority markets. The company's focus for next year will be to continue growth trajectory in key markets and investments in portfolio for sustainable growth.

Oil & gas stocks declined. Among shares of oil exploration and production (E&P) companies, ONGC (down 4.75%), Reliance Industries (down 1.58%) and Oil India (down 3.16%) edged lower.

Among PSU OMCs, BPCL (down 6%) and Indian Oil Corporation (down 4.89%) dropped.

HPCL dropped 8.06% after net profit fell 3.9% to Rs 1747.89 crore on 17.76% rise in total income to Rs 61152.73 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 22 May 2018.

HPCL said that the relative inventory gains during Q4 March 2018 were lower as compared to Q4 March 2017. HPCL recorded domestic sales volume of 9.39 MMT with a growth of 7.2% in Q4 March 2018 over Q4 March 2017. The sales of Motor Spirit (Petrol) increased by 12.8%, High Speed Diesel by 9.3% and LPG by 6.7% in Q4 March 2018 over Q4 March 2017.

HPCL said average gross refining margins (GRMs) during the year ended 31 March 2018, were US$ 7.40 per barrel as against US$ 6.20 per barrel during Ihe corresponding previous year.

Minda Industries surged 13.78% after consolidated net profit jumped 122.46% to Rs 139.95 crore on 61.49% rise in total income to Rs 1453.38 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 22 May 2018.

Minda Industries earnings before interest, taxation, depreciation and amortization (EBITDA) rose 61.6% to Rs 170 crore in Q4 March 2018 over Q4 March 2017. EBITDA margin expanded to 12.4% in Q4 March 2018 from 11.7% in Q4 March 2017.

Minda Industries' board approved issue of 2:1 bonus shares. The announcement was made after market hours yesterday, 22 May 2018.

Gravita India rose 1.86% after the company signed a contract with Amara Raja Batteries for lead acid battery scrap collection and recycling arrangements. The announcement was made after market hours yesterday, 22 May 2018.

Gravita India said that the company has signed a contract with Amara Raja Batteries for lead acid battery scrap collection and recycling arrangements. Under this contract Gravita shall collect/purchase lead acid battery scrap from designated locations of Amara Raja. It is a joint initiative towards environment protection and sustainability under which used batteries shall be recycled and pure lead/lead alloys will be supplied back to Amara Raja.

On the political front, Karnataka got its 24th chief minister in H.D. Kumaraswamy today, 23 May 2018 after last week's political developments that ensured the Congress and the Janata Dal (Secular) combine thwarted the Bharatiya Janata Party's (BJP) attempt to form the government in the crucial southern state.

The 12 May 2018 Karnataka assembly polls threw up a hung verdict with BJP emerging as the single largest party with 104 seats. The Congress was next with 78 and the JD(S) followed with 37. The BSP has one MLA and two seats went to Independents.

Overseas, European shares declined as a drop in crude prices weighed on energy companies. Asian shares slipped after US President Donald Trump said he was not satisfied with bilateral trade talks with China that occurred last week, but called them a start to working out the US trade imbalance with Beijing.

Meanwhile, China announced on Tuesday that it would reduce tariffs on some vehicles to 15% from as much as 25%. Tariffs on certain automotive parts would also be cut.

US stocks closed lower overnight as uncertainty over trade policy and other geopolitical issues remained high.

On the geopolitical front, Trump said Tuesday there was a substantial chance that a summit with North Korean leader Kim Jong Un may not work out. Trump's comments came as he met South Korean President Moon Jae-in ahead of a planned meeting, scheduled for 12 June 2018, with Kim.

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