The Sensex was trading higher by 30 points, while the Nifty gained six points in early trade. Index stocks that gained in early trade were Bharti Airtel, DLF, Cipla, Siemens and Jaiprakash Associates.
Shares of NMDC was down after the government fixed Rs 147 a share as the base price-- a discount to the current market price.
Kingfisher Airlines was locked at the upper end of the circuit filter for the second day in a row following reports that the company was in talks with Etihad Airlines for a stake sale.
Index stocks that lost in early trade were GAIL, NTPC, Dr Reddy's Laboratories and HDFC lost ground.
Jet Airways jumped more than 2% after the airline expanded its codeshare agreement with the United Arab Emirates' Etihad Airways to include flights operating from Abu Dhabi to Charles de-Gaulle airport in Paris.
Heavyweight, Reliance Industries gained ground and was trading higher by 0.5%. Software stocks were trading higher with TCS, Wipro and Infosys gaining more than 1% in trade. However, banking stocks were trading flat to negative with HDFC Bank and ICICI Bank losing marginally, while SBI gained.
Metals stocks were marginally up with Tata Steel, Sterlite and Hindalco amongst the gainers.
Meanwhile, markets in Asia were all trading higher, except the Chinese Shanghai Composite which was trading marginally lower.