Leading the set of gainers from the Nifty were Coal India, Tata Motors, HDFC and Larsen and Toubro.
Top Nifty losers in early trade were ONGC, Sesa Sterlite and Cipla. Mid cap stocks were also trading lower with Aurobindo Pharma, Karnataka Bank and Unitech among the prime losers.
Select infra and capital goods stocks like Gammon and HCC were trading higher on hopes that there would be some large scale spending on infrastructure projects. Infosys was trading higher after a foreign brokerage firm upgraded the stock. The company is Set to declAre its quarterly results tomorrow.
TCS and Wipro were lower after the rupee gained ground against the dollar.
Most of the Asian markets were trading with modest losses, including the Shanghai Composite and the Hong Kong's Hang Sang.