The Sensex and the Nifty traded in a narrow range with small losses in mid-afternoon trade. At 14:22 IST, the barometer index, the S&P BSE Sensex, was down 14.96 points or 0.04% at 38,705.61. The Nifty 50 index was down 19.45 points or 0.17% at 11,539.15.

Broader markets outperformed Sensex. The S&P BSE Mid-Cap index was up 0.42%. The S&P BSE Small-Cap index was up 0.02%.

The market breadth was negative. On the BSE, 1089 shares rose and 1241 shares fell. A total of 153 shares were unchanged.

Dilip Buildcon was down 0.07% to Rs 429.45. The company announced that it has successfully completed the road project involving four-laning of Lucknow- Sultanpur Section of NH-56 in Uttar Pradesh under NHDP Phase-IV. The project was completed 188 days prior to the schedule completion date and hence the company is also entitled to a maximum bonus of Rs 37.90 crore.

REC fell 15.5% to Rs 135.5. The stock has fallen 19.03% in three trading sessions, from a recent closing high of Rs 167.35 on 4 July 2019.

Lupin was up 1.98% to Rs 748.25 after the company announced the launch of lmatinib Mesylate tablets, 100 mg and 400 mg, a generic version of Novartis Pharmaceuticals Corporation's Gleevec tablets. This tablet is used in treating cancer.

FMCG stocks witnessed selling. Colgate Palmolive (India) (down 1.1%), Godrej Consumer Products (down 1.07%), Britannia Industires (down 0.74%), Nestle India (down 0.53%), Tata Global Beverages (down 0.32%), Hindustan Unilever (down 0.19%) and GlaxoSmithkline Consumer Healthcare (down 0.07%) declined. Dabur India (up 0.83%), Bajaj Consumer Care (up 0.53%), Jyothy Laboratories (up 0.49%), Procter & Gamble Hygiene & Health Care (up 0.34%) and Marico (up 0.23%) edged higher.

Auto stocks declined. Ashok Leyland (down 1.54%), Eicher Motors (down 1.21%), Maruti Suzuki India (down 1.06%), Bajaj Auto (down 0.5%) and Mahindra & Mahindra (down 0.27%) declined. Escorts (up 1.87%), Hero MotoCorp (up 1.16%) and TVS Motor Company (up 0.41%) edged higher.

Zee Media Corporation was down 3.13% to Rs 12.4 after company's managing director, Ashok Venkatramani, resigned from his post with effect from 9 July 2019.

India's benchmark bond yield broke its five day losing streak and rose today. The yield on 10-year benchmark federal paper rose to 6.607% at 14:15 IST compared with 6.562% at close in the previous trading session.

In the commodities market, Brent crude for September 2019 settlement was up 19 cents at $64.3 a barrel. The contract fell 12 cents or 0.18% to settle at $64.11 a barrel in the previous trading session.

MCX Gold futures for 5 August 2019 settlement fell 0.4% at Rs 34,440.

Overseas, European markets were trading lower, while most Asian markets closed on a negative note on Tuesday after their US counterparts slipped overnight.

In Europe, the UK Conservative Party members start voting to choose Theresa May's successor. Front-runner Boris Johnson and Jeremy Hunt will appear at events through the week, including a televised debate on July 9.

US stocks dropped Monday as investors scaled back expectations for interest-rate cuts following last week's strong June jobs report.

The key testimony from Federal Reserve Chairman Jerome Powell this week will be closely watched, as investors assess prospects for monetary easing following some conflicting signals on the US economy. Federal Reserve Chairman Jerome Powell testifies before Congress on monetary policy and the state of the US economy on Wednesday (the House of Representatives) and Thursday (the Senate).