Key indices cut losses soon after opening with downward gap. At 9:23 IST, the barometer index, the S&P BSE Sensex, was down 10.41 points or 0.03% at 40,257.21. The Nifty 50 index was down 5.35 points or 0.04% at 12,083.20.

The S&P BSE Mid-Cap index was up 0.45%. The S&P BSE Small-Cap index was up 0.38%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 725 shares rose and 410 shares fell. A total of 50 shares were unchanged.

Overseas, most Asian stocks were trading lower on concerns about global growth. US stocks finished mostly lower Monday, as the government stepped up scrutiny of technology giants for possible violations of antitrust law. There were some signs of moderation of trade tensions with officials from China and Mexico indicating that they are open to talks with the U.S. as tensions ramp up.

In US economic data, the Institute for Supply Management said its US Manufacturing Purchasing Managers Index declined to 52.1 in May from 52.8 in April, marking the lowest level since October 2016.

Back home, Dr. Reddy's Laboratories gained 2.52% after the company announced the relaunch of Zenatane (lsotretinoin Capsules, USP), 10 mg, 20 mg, 30 mg and 40 mg a therapeutic equivalent generic version of Accutane, approved by the US Food and Drug Administration (USFDA). The product is being launched with an approved Risk Evaluation and Mitigation Strategy (REMS) Program.

L&T Technology Services fell 1.1% to Rs 1,704.80. The company said that its promoter, Larsen & Toubro (L&T), plans to sell upto 3.88% stake in L&T Technology Services through offer for sale (OFS). The offer shall take place over two trading days on 4 June 2019 and 6 June 2019. L&T will sell up to 40.34 lakh shares at a floor price of Rs 1,650 each.

GE Power India advanced 4.98% after the company was awarded a contract worth Rs 738.3 crore by Aravali Power Company (a Joint venture company of NTPC, Haryana Power Generation Company and Indraprastha Power Generation Company) for Design, Engineering, Civil Work, Supply, Erection and Commissioning of Wet FGD systems along with auxiliaries like Limestone and Gypsum Handling System and Wet Stack on full turnkey basis.