Key equity benchmarks were hovering in a narrow range with modest gains in afternoon trade. At 13:35 IST, the barometer index, the S&P BSE Sensex was up 236.12 points or 0.62% at 38,450.59. The Nifty 50 index was up 67.45 points or 0.59% at 11,408.60.

Frontline stocks advanced amid hopes that the central bank will continue with accommodative policy and further cut key interest rates in its next policy review.

The broader market was mixed. The S&P BSE Mid-Cap index was up 0.44%. The S&P BSE Small-Cap index was down 0.11%.

The market breadth was tilted in favour of sellers. On the BSE, shares 991 rose and 1,278 shares fell. A total of 169 shares were unchanged.

On the domestic macro front, the general consumer price index (CPI) inflation rose to 3.99% in September 2019, compared with 3.28% in August 2019. The corresponding provisional inflation rate for rural area was 3.24% and urban area 4.78% in September 2019 as against 2.25% and 4.49% in August 2019. The core CPI inflation eased to 3.99% in September 2019 compared with 4.20% in August 2019. The cumulative CPI inflation has declined to 3.27% in April-September FY2020 compared with 4.32% in April-September FY2019.

The Reserve Bank of India (RBI) aims to achieve the medium-term target for CPI inflation of 4% within a band of +/-2%, while supporting growth. RBI on 4 October reduced repo rate by 25 basis points (bps) to 5.15%. It was the fifth straight rate cut from the RBI, resulting in an overall decline of 135 bps or 1.35 percentage point in the key lending rate. The next meeting of the MPC is scheduled during 3-5 December 2019.

The Wholesale Price Index (WPI)-based inflation, base year 2011-12, dipped further down to 39-months low of 0.3% in September 2019 from 1.1% in August 2019. The WPI based inflation has been moderating consistently for last five straight months from 3.2% in April 2019. The data was unveiled during trading hours on Monday, 14 October 2019.

India's balance of trade data for September 2019 will be announced later today, 15 October 2019. India's trade deficit narrowed to $13.45 billion in August 2019 from $17.92 billion in the same month last year.

IT major Wipro fell 0.25% ahead of Q2 results today, 15 October 2019.

Hero MotoCorp (up 2.98%), Mahindra & Mahindra (up 2.56%) and Maruti Suzuki India (up 2.49%) advanced.

Tata Motors (down 2.50%), Bharti Airtel (down 2.27%) and Tata Steel (down 1.17%) declined.

Yes Bank declined 2%. The bank sold 5.10 crore equity shares, constituting 6.77% of the paid-up share capital of Fortis Healthcare (FHL) as on 30 June 2019, in various tranches last being on 14 October 2019 resulting into a change in holding of the bank by more than 2% of the total shareholding of FHL, from the last disclosure made by the bank on 10 June 2019. The announcement was made after market hours yesterday, 14 October 2019.

IT major Infosys lost 1.83%, extending its recent losses. The stock tumbled 5.44% in two trading session from its closing high of Rs 815.70 on 11 October 2019. The stock surged 4.19% on Friday ahead of Q2 earnings.

On a consolidated basis, Infosys' net profit rose 4.55% to Rs 3,971 crore on 3.78% increase in total revenue from operations to Rs 22,629 crore in Q2 September 2019 over Q1 June 2019. The company's operating margin stood at 21.7% in Q2 September 2019 as against 20.5% in Q1 June 2019. The firm increased lower end of FY 2020 revenue guidance. Revised guidance is 9%-10% in constant currency. It maintained FY 2020 operating margin guidance range of 21%-23%.

Eicher Motors rallied 4.03%. Shares of the auto major jumped 5.48% to its current market price of Rs 19,050 in three trading sessions from its recent closing low of Rs 18,060.05 on Thursday, 10 October 2019.

Hindustan Unilever (HUL) advanced 1.95% to Rs 2,054 after the company announced strong Q2 September 2019 result after market hours yesterday, 14 October 2019.

On a consolidated basis, HUL reported 22.73% rise in net profit to Rs 1,814 crore on a 5.2% increase in total income to Rs 10,229 crore in Q2 September 2019 over Q2 September 2018. The result was announced after market hours yesterday, 14 October 2019.

HUL said that earnings before interest, tax, depreciation and amortization (EBITDA) was Rs 2,443 crore, up by 21% (16% on comparable basis after adjusting for accounting impact of Ind AS 116). Profit after tax (BEI), at Rs 1,832 crore was up 20%, and profit after tax, at Rs 1,848 crore increased by 21% after incorporating the reduction in Corporate Tax rate.

Margin expansion was driven by improved mix, benign commodity price movement in our large segments and our savings agenda, HUL said.

HUL chairman and managing director Sanjiv Mehta said that the near-term outlook for demand especially in rural India remains challenging.

HDFC rose 0.23% to Rs 2,016.15. HDFC reduced its retail prime lending rate by 10 basis points from 8.35% to 8.25% with effect from Tuesday, 15 October 2019. The announcement was after market hours yesterday, 14 October 2019.

ZEE Entertainment Enterprises (ZEEL) gained 3.15% to Rs 250.20. Reports said that VTB Capital acquired the right to direct disposal of 10.71% stake in ZEEL held by promoter, Essel Media Ventures. VTB Capital has also said that it would willingly cease all enforcement action and release encumbrances upon repayment of outstanding amounts under the loan facility.

Indian Oil Corporation (IOCL) was up 1.17%. Media reported that ExxonMobil has announced its LNG collaborations in India. The global oil giant has joined hands with IOCL to explore growth opportunities in the country. The collaboration aims to explore ways to accelerate India's access to cost-effective natural gas.

BPCL was up 0.82% at Rs 489.75. A global brokerage firm has reportedly maintained its 'buy' recommendation, raising the target market price of the stock by 17.52% to Rs 570 per share from Rs 485 per share. Another brokerage house has also maintained a 'buy' call on the stock with a target market price pegged at Rs 560 per share.

Overseas, European stocks advanced while most Asian stocks were trading lower on Tuesday, following the previous day's rally, as new doubts emerged overnight about the US-China partial trade deal. China wants another round of talks before signing what U.S. President Donald Trump last week called a very substantial phase one deal between the two countries.

U.S. Treasury Secretary Steven Mnuchin reportedly expects the mid-December round of tariffs to take effect if no deal is reached between the countries.

In Europe, European Union negotiator Michel Barnier reportedly said a Brexit deal between the bloc and the U.K. is still possible this week.

US stocks edged lower on Monday as investors turned their focus on the third-quarter earnings season, which begins in earnest on Tuesday.