A bout of volatility was seen in early trade as the key indices dipped in negative zone after reversing initial losses. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 21.58 points or 0.06% at 38,709.24. The Nifty 50 index was down 7.40 points or 0.06% at 11,548.50. Shares of TCS dropped after the company reported muted Q1 result. Asian stocks were trading mixed.

The S&P BSE Mid-Cap index was up 0.19%. The S&P BSE Small-Cap index was up 0.33%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 665 shares rose and 419 shares fell. A total of 38 shares were unchanged.

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

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.

Investors are awaiting 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.

Back home, IT major TCS dropped 2.34%. 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.

Bharti Airtel rose 0.03%. Bharti Airtel informed that shares of its subsidiary, Airtel Africa Plc, have been listed and admitted for trading on the London Stock Exchange (Premium Segment) and Nigerian Stock Exchange. The announcement was made after market hours yesterday, 9 July 2019.

Adani Ports and Special Economic Zone rose 0.2%. Adani Ports and Special Economic Zone scheduled a board meeting on 12 July 2019 to consider raising funds by way of issuance of US $ denominated foreign currency bonds (Bonds) for total amount not exceeding $700 million on a private placement basis. The announcement was made after market hours yesterday, 9 July 2019.

NLC India dropped 1.81%. NLC India said that 63 MW capacity out of the 100 MW Solar PV power plant at Therkkupatti and Subbiahpuram Village, Tamil Nadu, out of 709 MW solar power projects awarded by TANGEDCO has been successfully commissioned and that the commercial operation has been declared with effect from 7 July 2019. The announcement was made after market hours yesterday, 9 July 2019.

Tasty Bite Eatables gained 3.23%. Tasty Bite Eatables scheduled a board meeting on 12 July 2019, to consider and approve a proposal for raising of funds by issuance of equity shares on a preferential basis. The announcement was made after market hours yesterday, 9 July 2019.

Meanwhile, 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.