Among the top losers from the Nifty in early trade were Tata Consultancy, ONGC, ITC, Gas Authority and Maruti Suzuki.
High beta realty stocks were among the prominent gainers with names like Anant Raj, DLF, HDIL, Sobha, Phoenix Mills and Unitech Ltd among the gainers.
The Bankex index was also trading higher led by strong gains in banking stocks that included names like ICICI Bank, IDBI Bank, Punjab National Bank and State Bank of India.
The IT index also gained on the bank of gains recorded in stocks like Infosys Technologies, Mahindra Satyam, Wipro and HCL Technologies.
Metal stocks that saw huge selling pressure following the Union Budget saw buying interest at lower levels, with the prominent winners from the space being Steel Authority, NMDC and Sterlite Industries.
Shares of Mahindra and Mahindra dropped after reports that workers had threatened a strike over wages at the company's Nashik plant.
Among non index stocks Uttam Galva shares jumped 5 per cent after the company said it was raising Rs 175 crore. PC Jeweller shares jumped 5 per cent after reports that the company will replace Orient Paper in S&P BSE 500 Index.
Meanwhile, markets in Asia were trading higher led by strong gains in the Japanese Nikkei and the Hong Kong's Hang Sang. Indian markets are expected to remain strong and would now look to the RBI's credit policy for further cues.