The Sensex and the Nifty opened the day strong ahead of the RBI's Monetary Policy Review to be held later today.
The Sensex was trading with gains of 118 points, while the Nifty was higher by 35 points. Leading the set of gainers from the Nifty were banking stocks which were trading higher ahead of the policy. ICICI Bank, Bank of Baroda, IndusInd Bank, State Bank of India and Punjab National Bank were among the gainers.
FMCG stocks like Hindustan Unilever and ITC were trading marginally higher. Hindalco which saw a super rally on Monday gave up some gains on profit taking and was marginally lower.
Midcap stocks also saw some buying interest with notable gainers from the space being Voltas, Tata Chemicals and McLeoyd Russell. Shares in Bharat Forge continued to gain ground after the company reported a good set of results.
Shares in Ranbaxy continued to see buying interest after the US Federal Trade Commission (USFTC) gave a conditional nod to Sun-Ranbaxy's merger plan.
Meanwhile, markets across Asia were trading marginally weak with the Hong Kong's Hang Sang and the Straits Times lower.