After yesterday's disappointing RBI measures to prop the rupee, the benchmark indices opened flat. Asian bourses were trading lower as investors were skeptical about the outcome of EU Summit, which is to be held later this week.
The Sensex was trading at 16,867 points, down 2.88 points. The Nifty was seen trading lower by 0.45 at 5,115 points at 9.30 am IST.
On Monday, markets reversed morning gains after RBI measures to control slide of rupee, disappointed investors. The RBI raised the limit of the external commercial borrowings to USD 10 billion, apart from hiking the limit of overseas investment in government bonds by USD 5 billion to USD 20 billion.
Globally, investors are concerned and doubtful about the EU Summit that it may fail to boost the eurozone debt turmoil, which is affecting health of global economy.
Among the shares that gained ground in morning trade were Grasim, Tata Power, Jindal Steel and ONGC. Spice Jet rose on reports of Etihad, Qatar Airways planning a minority stake in the company.
Stocks that failed to lure investors in early trade were Tata Steel, SAIL, HUL and ITC.