The BSE Sensex was trading higher by 20 points, while the Nifty gained 4 points at 5362 points at 9.20 am IST.
Among the early gainers in the Nifty was Infosys technologies, which rose more than 1% on fresh hopes of a buyout. Other shares that gained in trade today were Sterlite Industries, Sun Pharma, Dr Reddy's Laboratories and Cipla.
Banking shares were trading marginally lower with ICICI Bank down and State Bank of India down 0.20%. Heavyweight Reliance Industries was trading flat at Rs 796.50.
Among the shares that lost ground in early trade were TCS, Ambuja Cements and ACC. Asian markets were trading higher with the Chinese Shanghai Composite, Hong Kong's Hang Sang and Singapore's Strait Times all trading higher.
Markets are expected to be range bound and would await the outcome of a US Federal Reserve meeting slated for September 12-13, wherein the US central bank would decide on a fresh round of quantitative easing.
Closer to home markets would await the IIP and inflation data, which would decide the outcome of the RBI rate action on September 17.