Shares turn volatile; breadth positive

A dash of volatility was witnessed in morning trade as the key indices oscillated between positive and negative zone. At 10:25 IST, the barometer index, the S&P BSE Sensex, was up 8.52 points or 0.02% at 38,739.24. The Nifty 50 index was marginally down 1.85 points or 0.02% at 11,554.05.

The S&P BSE Mid-Cap index was down 0.06%. The S&P BSE Small-Cap index was up 0.08%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 918 shares rose and 798 shares fell. A total of 90 shares were unchanged.

Losses in Tata Motors (down 2.86%) and Hindalco Industries (down 1.57%) were equalized by gains in Yes Bank (up 2.13%) and Titan Company (up 1.46%).

Low-cost air carrier InterGlobe Aviation was down 12.51% at Rs 1369.95 after its co-founder raised corporate governance issue with market regulator Securities and Exchange Board of India (Sebi).

Another low-cost air carrier SpiceJet was up 5.63% at Rs 123.85.

Shares of IT companies were trading higher. Tech Mahindra (up 1.2%), HCL Technologies (up 1.16%), Hexaware Technologies (up 1.01%), Wipro (up 0.94%), Infosys (up 0.74%), Mphasis (up 0.61%) and Oracle Financial Services Software (up 0.32%) gained. MindTree (down 1.04%) and Persistent Systems (down 0.04%) declined.

IT major TCS dropped 0.68% to Rs 2117. On a consolidated basis, TCS reported 0.06% rise in net profit to Rs 8131 crore on 0.43% rise in total income to Rs 38172 crore in Q1 June 2019 over Q4 March 2019. TCS announced Q1 result after market hours yesterday, 9 July 2019.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 68.6175, compared with its close of 68.5100 during the previous trading session.

Manpasand Beverages hit lower circuit of 5% at Rs 38.85 after Mehra Goel & Co. resigned as statutory auditors due to probe into company by GST authorities.

Bharat Heavy Electricals (BHEL) was up 0.07% to Rs 67.2. The company announced that it has signed an agreement with Container Corporation of India to form joint working group to establish rail based logistics terminal at Haridwar.

DHFL (up 1.06%) and Reliance Capital (down 4.31%) were under F&O ban by NSE today, 10 July, after crossing 95% of the market-wide position limit.

On macro front, weak growth prospects for India will complicate the government's fiscal consolidation efforts, weighing on the sovereign's credit quality, Moody's Investors Service said July 9. The 2019-20 Budget presented in Parliament last week projected to contain fiscal deficit at 3.3% of GDP, lower than 3.4% estimated in the interim Budget.

Overseas, Asian stocks were mixed as investors await comments from US Federal Reserve Chairman Jerome Powell for possible clues on the central bank's next move on interest rates.

Investors are waiting for two-day testimony before Congress by Fed Chairman Jerome Powell due to start Wednesday. Also due on Wednesday is the central bank's June policy meeting minutes. Markets are hoping the central bank's chief will shed some light on a meeting of the central bank's interest-rate setting committee, slated for July 30-31, with investors clinging to hopes for a rate cut.

On the economic data front, the National Federation of Independent Business released its small business optimism index, which fell to 103.3 in June, from 105 in May.

U.S. stocks ended mixed on Tuesday after a late-day rally boosted the S&P 500 and Nasdaq Composite but left the Dow Jones Industrial Average to suffer its third straight loss.

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