A bout of volatility was seen in early trade as the key benchmark indices cut losses soon after a weak start to the day's trading session. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 107.70 points or 0.28% at 39,015.26. The Nifty 50 index was down 28.05 points or 0.24% at 11,671.60. The Sensex regained the psychological 39,000 level after falling below that level in early trade.

The S&P BSE Mid-Cap index was up 0.04%. The S&P BSE Small-Cap index was down 0.07%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 543 shares rose and 606 shares fell. A total of 45 shares were unchanged.

Overseas, Asian stocks were trading lower as investors are waiting to see if anything will come of US-China trade talks later this week.

Meanwhile, US President Donald Trump and Chinese President Xi Jinping Xi are set to meet later this week at a Group of 20 summit in Osaka, Japan, with investors looking for signs the leaders can work out a truce in a trade war that has raised concerns about global economic growth and corporate earnings.

In US, most major stock benchmarks finished lower on Monday, though the Dow managed a slight gain, on selling in the energy sector after President Donald Trump announced hard-hitting Iranian sanctions.

On Monday, U.S.-Iranian tensions escalated, as Trump signed an executive order targeting financial sanctions against Iran's leaders, including its Supreme Leader Ayatollah Ali Khamenei.

Back home, Infosys shed 0.58%. Infosys announced a long term strategic partnership with Toyota Material Handling Europe (TMHE). As IT services partner, Infosys will help TMHE in its digital transformation journey by facilitating transformation to a scalable digital hybrid cloud platform, providing application services, digital workplace, infrastructure management and a dedicated data center operation. The announcement was made after market hours yesterday, 24 June 2019.

TCS fell 0.66%. TCS announced that it is increasing its holding in TCS Japan, its joint venture with Mitsubishi Corporation (MC), one of Japan's largest integrated business enterprises. Following the stake hike, TCS will hold 55% equity in TCS Japan - up from 51%, when the joint venture was established in July 2014 - and MC will hold 34%. The announcement was made after market hours yesterday, 24 June 2019.

Syndicate Bank declined 0.55%. Syndicate Bank scheduled a board meeting on 29 June 2019, to consider and approve capital raising plan of the bank for the FY 2019-20. The announcement was made after market hours yesterday, 24 June 2019.

IFCI gained 3.51%. IFCI said that the company's board has approved the sale of its remaining stake of 1.20 crore equity shares comprising of 2.44% of the total equity shares of NSE. The announcement was made after market hours yesterday, 24 June 2019.

Eris Lifesciences rose 1.65%. Eris Lifesciences said that the board of directors will consider a proposal of buyback of the fully paid-up equity shares of the company at its meeting scheduled to be held on 3 July 2019. The announcement was made after market hours yesterday, 24 June 2019.