Leading the set of gainers from the Nifty were Reliance Industries, Tata Steel, HDFC, Hindalco and Larsen and Toubro.
Tata Motors was trading marginally lower after its May volumes disappointed the street. Shares in Bharti Airtel were up after reports that the company is likely to conclude a much-anticipated deal to sell its towers in Africa.
Spice Jet and Jet Airways were trading higher after a cut in the prices of aviation turbine fuel. Banking stocks were trading marginally lower ahead of the RBI's Monetary Policy review. ICICI, IndusInd Bank, Yes Bank, Bank of India and Canara Bank were all trading with losses.
Realty stocks, however, saw some buying interest with notable gainers being Godrej Properties and Anant Raj Industries. Heavyweight, ITC which lost ground on Monday continued to trade lower and was down 1 per cent in early trade.
Mid cap stocks where all the action has been in the last few days continued to trade higher. Notable gainers from the space were GMR Infra, Reliance Capital and Unitech.
However, select stocks like Petronet LNG and Allahabad Bank lost ground. Meanwhile, markets in Asia were trading with gains led by the Hong Kong's Hang Sang and the Chinese Shanghai Composite.