Benchmark indices opened the day higher ahead of the RBI Monetary Policy, scheduled later today. The Sensex was trading with gains of 92 points, while the Nifty was trading higher by 28 points in early trade.
Leading the set of gainers from the Nifty and the Sensex were stocks like ICICI Bank, Axis Bank and IndusInd Bank. Karnataka Bank which saw a spectacular rally on Monday, gave up gains and was trading with losses.
Movement was also seen in other rate sensitive stocks, like autos and real estate despite belief that the RBI would hold interest rates steady.
Shares in Vedanta were trading with gains, after reports that the company will invest substantially in its zinc business.
Larsen and Toubro was trading higher after reports that the company had secured a contract to build a $135 million stadium for Qatar's 2022 World Cup, according to a Reuters report.
Redington saw selling pressure after reports that Harrow Investment Holding, the promoter of Redington (India) sold over five per cent stake in two separate open market transactions.
Shares in Patel Engineering rallied 4 per cent after reports that debt holders of the company will convert some of their debt to majority equity under the strategic debt restructuring (SDR) scheme.
Meanwhile, markets across Asia were trading with gains, following a spectacular rally across the US markets.