Benchmark indices were trading marginally higher, setting new records, even as the exit poll euphoria seemed to wane.
The Sensex was trading with gains of 127 points at 39,480 points, while the Nifty was up 29 points in trade.
The rupee too opened flat with gains of just 2 paise at 69.72 over Monday's close. Global cues were not too supportive as most Asian markets were trading weak after sluggish closings in the US.
Leading the set of gainers from the Sensex in trade once again was HDFC, which saw value buying emerging even at near record peaks. Heavyweights like Reliance Industries, TCS and HDFC Bank continued to lend support to the markets.
Among the Nifty stocks that dropped in early trade was Yes Bank. Shares in BPCL was also trading lower, despite a good set of results. HPCL too dropped reacting to its results. Shares in Dhampur Sugar Mills was in the limelight and the stock rallied 2 per cent, after reporting a good set of results.
Adani Ports and IndiaBulls Housing continued to lead gainers from the Nifty. Meanwhile, Asian markets were seeing some losses led by the Japanese Nikkei and the Korean Kospi. Trade worries continued to surface between the US and China.