Pharma stocks like Lupin, Sun, Cipla and Ranbaxy were among the early gainers in trade. Heavyweight stocks like ITC, Reliance and HDFC also gained in early trade.
Larsen and Toubro which lost heavy ground on Monday gained on value buying. Canara Bank was trading marginally lower ahead of its results to be declared later today, while most other PSU banks gained ground.
Among the PSU banks that rallied in trade were Syndicate Bank, IDBI Bank and Oriental Bank of Commerce.
Private sector banks were also trading higher today with IndusInd Bank, Yes Bank and HDFC Bank among the early gainers.
Metal stocks saw some selling pressure with the likes of Tata Steel and Sesa Sterlite falling. Steel Authority of India lost ground after a rating downgrade from a leading brokerage firm.
Among the Sensex stocks that saw selling pressure was Tata Motors which has fallen for the second dy in a row, despite reporting good Q2 numbers.
Other Nifty stocks that declined were Coal India, Gas Authority of India and Tata Steel. Realty stocks were once again trading higher with DB Realty, DLF and Sobha among the early gainers.
Meanwhile, markets in Asia were trading higher led by strong gains in the Japanese Nikkei and the Seoul Composite.