BENGALURU, Reuters Indian shares fell on Tuesday, dragged by information technology stocks on U.S. rate worries, while volatility climbed to a 23month high.

The bluechip NSE Nifty 50 was down 0.14 at 22,471.50 points, while the SP BSE Sensex shed 0.20 to 73,850.14, as of 1004 a.m. IST.

Eight out of 13 subsector indexes logged losses, with the highestweighted financial stocks losing 0.3.

IT companies, which earn a significant share of their revenue from the U.S., fell 0.6, on worries about U.S. interest rates staying higher for longer after Federal Reserve officials maintained a cautious view on inflation.

Meanwhile, volatility in Indian markets rose to 22.30 in intraday trade, a 23monthhigh, ahead of election results on June 4 and amid persistent foreign selling.

Given the uncertainty over election results, foreign investors have been aggressively selling shares since the second half of April, adding to the pressure on markets, said Sujit Modi, chief investment officer at Bengalurubased online investment platform Share.Market.

FPIs have offloaded Indian shares worth 282.42 billion rupees in May, the highest since January 2023.

The likelihood of delay in the onset of rate cuts in the U.S. has also added to the concerns, added Modi.

The smallcaps and midcaps shed 0.3 each, mirroring the benchmarks.

Caution prevails in broader markets, as profitbooking is highly likely in the segments after election results, said G Chokkalingam, managing director of research at…