The Sensex was trading higher by 33 points, while the Nifty rallied 9 points in trade. Among the early gainers were once again the banking stocks with notable gainers being ICICI Bank and HDFC Bank.
Shares in Tata Consultancy Services fell after the company signalled a muted growth for Q4. The stock was down more than 3 per cent in trade.
Nifty stocks that gained in trade were Dr Reddy's Labs, HDFC, Grasim, Coal India and Mahindra and Mahindra.
Sesa Sterlite was trading higher despite reports that the company will shut its copper smelter for 22 days. The stock was up one per cent in early trade.
Heavyweights, ITC and Reliance which led the rally on Tuesday were trading almost flat. PSU banking stocks continued to see sustained buying with Canara Bank, Oriental Bank, Union Bank and Punjab National Bank among the early gainers.
Mid cap stocks were also trading higher with notable gainers being Crompton Greaves and Petronet LNG.
Shares in Maruti Suzuki which were trading significantly higher on Tuesday were lower on fresh worries over the Gujarat plant.
Meanwhile, most of the markets in Asia were trading with losses ahead of the US Fed decision on QE3 tapering.
The Shanghai Composite, Singapore's Strait Times and the Seoul Composite were all trading with losses.