Software stocks saw some smart recovery in trade with notable gainers being TCS and Infosys. Wipro rallied after the company won an over $400 million (Rs 2,400 crore) deal from Takeda Pharma.
PSU banking stocks were once again in the limelight. Allahabad Bank, Oriental Bank, Syndicate Bank and Canara Bank were among the early gainers.
Early Nifty laggards in trade were Hero Motor Corp, Ultratech Cement, Sun Pharma, Bajaj Auto and Coal India. Mid cap stocks continued to have a good run in trade with GMR Infra rallying 4 per cent and Petronet LNG also gaining 4 per cent.
United Bank stock saw a huge jump of 10 per cent on its proposed fund raising plans. Tata Global Beverages gained more than one per cent, after the company said that it had acquired Australian coffee company Bronski Eleven for an undisclosed amount.
Reliance Infra which has rallied substantially in the last few trading sessions lost ground after the company's net profit declined.
Metal stocks were in the limelight with Hindalco, Tata Steel and Sesa Sterlite among the winners. Realty stocks also took a breather after Monday's spectacular rally with DLF, Indiabulls and Anant Raj among the losers.
Meanwhile, markets across Asia were trading with gains led by the Japanese Nikkei and the Hong Kong's Hang Sang.