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At 9.35 am IST, the Sensex was trading at 16220 points, up 15 points and the Nifty was at 4902.45 points, up 5 points.
On Monday, spurt in inflation to 7.23% dampened market sentiment as further hopes of a rate cut diminished.
The Reliance Industries stock fell to a 52-week low on sustained selling, dragging the markets lower.
Stocks that failed to lure investors in early trade were Maruti Suzuki, IDFC, Tata Motors and Dr Reddys Laboratories.
Among the stocks that gained today in early trade were Larsen, Sesa Goa, Wipro, Jindal Steel.
Asian peers were trading mixed with the Nikkei 225 down by 1.37%, while the Hang Seng up 0.03% and the Shanghai Composite down 0.81%.
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