Benchmark indices opened the day flat to negative ahead of the Reserve Bank of India's (RBI) monetary policy on Sept 29.
Asian markets were trading marginally lower, while many markets in the region were closed for a public holiday.
Banking stocks were in focus ahead of the Reserve Bank of India's policy. ICICI Bank and Bank of India were both up 1 per cent each, while Kotak Mahindra and IndusInd Bank were trading with losses.
Maruti shares were trading marginally lower after reports of a protest by temporary workers at the factory.
IDBI Bank was once again in the limelight after reports that the government plans to bring down its stake in the bank to 49%. The stock was up 2 per cent in trade.
Elder Pharma also saw some gains after reports of sale of assets to tide over a cash crunch. Rate sensitive real estate sector stocks were also in demand ahead of the RBI monetary policy. A drop in interest rate will benefit the sector as credit and home loans become cheaper.
Mid cap stocks also saw some buying interest with notable gainers being Rajesh Exports, DHCL and Union Bank.
Meanwhile, the Japanese Nikkei and the Shanghai Composite were trading lower, while Taiwan, Hong Kong and South Korean markets were shut for a public holiday.