* NSE index up 0.06%, BSE index 0.07% higher
* Indiabulls Housing, Zee Entertainment top two gainers on NSE
By Chandini Monnappa
BENGALURU, July 3 (Reuters) - Indian shares remained volatile in morning trade on Wednesday, with global economic data hurting sentiments, while investors kept waiting for positive cues from the federal budget due later this week.
The broader NSE index was down 0.04% at 11905.3, while the BSE Index was down 0.01 at 39811.65 as of 0441 GMT, as they moved between gains and losses.
The Indian government is set to turn on the fiscal taps in the federal budget and revise its borrowing target slightly higher for this year and next, prompted by a slowing economy and weak jobs growth, a Reuters poll of economists showed. here
“The markets are consolidating before the budget and there is lack of domestic triggers,” said Saurabh Jain, assistant vice-president research, SMC Global Securities, adding that investors were waiting for measures to boost growth.
However, global growth worries had an impact on investor confidence, after South Korea cut its economic growth target as the prolonged U.S.-China tariff war hit global demand for the export powerhouse’s manufactured goods.
The escalating trade wars have also hit worldwide factory activity, which slowed in the United States, Europe and Asia last month.
Asian shares inched lower on Wednesday, with the MSCI’s broadest index of Asia-Pacific shares outside Japan inching 0.3% down.
Back home, the Nifty PSU bank index, which tracks India’s state-owned lenders, fell as much as 0.46%, with State Bank of India dropping as much as 0.4% and Bank of Baroda edging 0.79% lower.
Indiabulls Housing Finance Ltd and Zee Entertainment Enterprises Ltd were the top two gainers on the NSE index. Indiabulls Housing Finanace was up as much as 2.7% - on track for its third straight session of gains, while Zee Entertainment Enterprises rose as much as 1.8%.
Oil prices edged higher on Wednesday after falling more than 4% overnight, supported by extended output cuts by OPEC and its allies despite concerns that a slowing global economy could crimp demand.
The overnight drop boosted shares of Oil marketing companies such as Bharat Petroleum Corporation Ltd, which was up as much as 1.8%, and Indian Oil Corp, which gained as much as 1.6%.
However, the Nifty IT index was trading 0.26% lower with Tata Consultancy Services Ltd falling as much as 0.7%, while smaller rival HCL Technologies Ltd fell as much as 0.58%.
Reporting by Chandini Monappa in Bengaluru; Editing by Rashmi Aich