Despite higher overseas markets, the Sensex wavered in the noon trade as investors worried about the direction of the market ahead of the budget. Profit booking was seen at higher levels.

The Sensex was recently down 56 points, after rising as high as 0.8 per cent in early trade.

Market action was stock specific, with Sun Pharma up 2.8 per cent to be the biggest gainer among the Sensex stocks. Other frontline stocks that were among the gainers included Tata Steel, L&T and HUL.

Realty stocks were under pressure on profit taking after yesterday’s gains. DLF and Unitech were down 2-3 per cent.

Oil prices jumped above $73 a barrel Tuesday in Asia as a weakening US dollar and attacks on oil installations in Nigeria helped push prices to eight-month highs.

Benchmark crude for August delivery was up $1.06 to $72.55 a barrel in electronic trading on the New York Mercantile Exchange after trading as high as $73.38. On Monday, it gained $2.33 to settle at $71.49.

Oil has surged from below $35 in March in part on investor concern that massive US fiscal stimulus spending will eventually spark high inflation. Investors often buy commodities such as crude as a hedge against a weakening dollar and inflation. Led by commodity stocks, Asian markets were mostly higher in recent trade.