Benchmark indices opened the day flat ahead of a crucial referendum vote in Greece on July 5, which will decide yes or no to a bailout programme from the creditors. The Sensex was trading with gains of 27 points, while the Nifty was up 2 points in early trade.
Capital goods stocks rallied on hopes of an economic recovery with Bhel jumping almost 2 per cent in early trade.
PSU banking stocks also saw buying interest with Union Bank, Punjab National Bank, Syndicate Bank and Allahabad Bank among the early gainers.
Shares in Lupin were the major gainers after a foreign brokerage firm revised the target on the stock. Shares in Rajesh Exports continued to surge for a second day in a row.
Shares in DB Realty gained 3 per cent after reports that the company will join hands with Radius for realty project in Mumbai.
Mid cap stocks also saw good buying interest with stocks like ABB, Concor, DHFL and Exide among the gainers.
Nestle continued its upward journey as the Canadian Food Inspection Agency found no health risk in Maggi noodles.
Meanwhile, markets across Asia were down significantly on worries over Greece. The Shanghai Composite saw its biggest weekly loss in 22 years. The Japanese Nikkei, the Hang Sang and the Korean Kospi were all lower in trade.