The Sensex and the Nifty opened the day marginally higher despite a decline in banking stocks a day after the Reserve Bank of India held repo rates steady.
Banking stocks that declined in trade was Axis Bank which declined for the second straight day in a row, ICICI Bank and State Bank of India.
Punjab National Bank which reported a dismal set of results on Tuesday continued to grind lower.
ONGC was in the limelight after reports that the oil ministry proposed a new subsidy sharing mechanism.
Real estate stocks also came in for some selling pressure after the Reserve Bank of India did not cut interest rates. Stocks that dropped in trade were DLF, Unitech and Sobha Developers.
Hero Motor Corp also dropped in trade after results failed to match expectations. Other auto majors like Maruti and Mahindra and Mahindra were having a good day in trade.
Meanwhile, markets across Asia rallied in trade after US markets gained following a rise in crude prices. The Japanese Nikkei, Shanghai Composite and the Singapore's Strait Times were all higher.