Indices witnessed a bout of volatility in mid-morning trade. Both the key barometers wiped off day's gains and briefly slipped into negative terrain. At 11:15 IST, the barometer index, the S&P BSE Sensex, was now up 52.23 points or 0.13% at 39,487.17. The Nifty 50 index also bounced back and was now up 21.85 points or 0.19% at 11,818.30.

In the broader market, the S&P BSE Mid-Cap index was up 0.27%. The S&P BSE Small-Cap index was up 0.33%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1162 shares rose and 794 shares fell. A total of 116 shares were unchanged.

Sentiments were mixed after investors took caution ahead of the release of the full-blown union budget due next week and the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping. Trading was volatile as June 2019 derivative contracts expire on Thursday, 27 June 2019.

Most pharma stocks advanced. Aurobindo Pharma (up 3.54%), Cadila Healthcare (up 3.01%), Lupin (up 1.57%), Glenmark Pharmaceuticals (up 1.38%), Dr Reddy's Laboratories (up 1.21%), Cipla (up 1.20%), Wockhardt (up 0.76%) and Alkem Laboratories (up 0.37%) edged higher. Piramal Enterprises (down 1.02%), Divi's Laboratories (down 0.61%), IPCA Laboratories (down 0.41%) and GlaxoSmithKline Pharmaceuticals (down 0.02%) edged lower.

Edelweiss Financial Services was up 0.3% to Rs 168. ICRA re-affirmed the credit rating of commercial paper programme as [ICRA]A1 + assigned to the Rs 6,350 crores commercial papers and short-term non-convertible debenture programme of Rs 100 crore of the company. The rating of [ICRA]Al + indicates very strong degree of safety regarding timely payment of financial obligations. The rating of [ICRA]AA on Non-convertible Debentures Programme of Rs 466 crore of the company now stands as [ICRA]AA-. Rating of [ICRA]AA-indicates high degree of safety regarding timely payment of financial obligations carrying very low credit risk.

Most realty stocks rose. Indiabulls Real Estate (up 3.38%), Anant Raj (up 2.23%), Oberoi Realty (up 2.13%), DLF (up 1.73%), Sobha (up 0.42%), Prestige Estates Projects (up 0.3%), Omaxe (up 0.15%) and Phoenix Mills (up 0.05%) advanced. Godrej Properties (down 1.72%), Mahindra Lifespace Developers (down 1.71%) and Sunteck Realty (down 1.44%) declined.

SBI Life Insurance Company was up 4.73% to Rs 706.80 after foreign research house maintained buy rating on the stock with a target of Rs 830 per share.

Overseas, most Asian stocks were trading lower on Wednesday after US Federal Reserve officials tempered expectations in the markets for aggressive monetary easing.

US stocks declined Tuesday after Federal Reserve Chairman Jerome Powell said the central banks was still monitoring the economy for signs of weakness and would seek to avoid a knee-jerk reaction in terms of cutting benchmark interest rates.

Fed Chair Jerome Powell noted the Fed will take a wait-and-see approach given how rapid recent economic changes have been. Powell on Tuesday also said the central bank is insulated from short-term political pressures, pushing back against US President Donald Trump's demand for a significant rate cut.

Meanwhile, investors looked toward developments on the US-China trade front, with presidents Donald Trump and Xi Jinping set to meet at the G-20 summit later this week. Investors are also watching the Middle East, with continuing tensions between the US and Iran. Iran said Trump's decision Monday to impose additional sanctions on Iran had closed the door to diplomatic negotiations.