Global markets were subdued in trade and the Indian benchmark indices also opened tentatively ahead of the US Federal Open Market Committee (FOMC) Meet which will decide on interest rate hikes in the US.
Asian markets were largely subdued, though the Japanese Nikkei was trading with gains even as the Bank of Japan kept policy rates unchanged.
Banking stocks which had rallied sharply on Monday following hopes of an interest rate cut, were largely trading flat. ICICI Bank, Axis Bank and Kotak Bank were unchanged over Monday's levels.
Mid cap stocks also were seeing some buying traction with stocks like Bata India and Sail among the early gainers.
Amtek Auto which has seen a solid rally after the company's clarification and fresh infusion of funds by the promoters, continued to gain ground. The stock was up 3 per cent in trade.
Rate sensitive stocks like real estate which had rallied on Monday following a low inflation and data and hopes of interest rate cut, continued to gain ground.
Meanwhile, most of the Asian markets were marginally lower ahead of the FOMC meet on Sept 16 and Sept 17.
The meet would decide on whether there would be an interest rate hike in the US, which would not be good for stock markets across the globe.