The market on Tuesday opened flat with subdued global cues as the Sensex traded up 12.99 points at 28016.11, and the Nifty up 2.20 points at 8638.75.
Shares such as Sun Pharma, Maruti, Lupin and SBI were top gainers while ICICI Bank, HDFC, Infosys, Wipro and Hero were among losers in the Sensex.
The Indian rupee opened marginally lower at 66.78 per dollar versus previous close 66.74. The dollar maintained gains against the yen.
The dollar, however, did pare some gains after data showed that the US economy's manufacturing sector in July expanded at a slower pace than in the previous month.
The Reserve Bank of Australia's policy board will decide on Tuesday whether rates should be left at 1.75 percent or trimmed a quarter point to a new record low, with most analysts predicting the need to combat low inflation and a rising currency will win the argument for more stimulus.
Prices of crude oil has fallen more than 20 percent from a peak reached in June, with Saudi Arabia cutting crude prices to Asia and further increases in US drilling rigs sparking Monday's 3.7 percent tumble.
Also, gold prices held steady around USD 1350 an ounce. Other precious metals fared better on improved investor sentiment, with spot palladium hitting a 13-month high spot silver touching a three-week high.