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Benchmark indices have erased early gains and are trading flat led by weakness in banking and FMCG shares.
By 10:10, the Sensex was higher by 49 points at 20,656 mark and the Nifty gained by 12 points at 6,125 levels.
On the global front, Asian shares rose to their highest in nearly five months on expectations of an imminent deal to reopen the US government and avert a possible debt default, though the squabbling in Washington kept markets on edge ahead of Thursday's deadline.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.6% on Tuesday morning to its highest level since May 23. Tokyo's Nikkei share average also gained 0.6%, hitting a two-week peak.
Back home, the rupee appreciated in early trade today tracking the Non Deliverable Forwards (NDF) market.
At 10:00 am, the rupee was trading at Rs 61.51 compared with previous close of Rs 61.55 per dollar.
On the sectoral front, BSE Realty, TECk, IT, Oil & Gas, Power, Consumer Durables, Healthcare, Metal, Capital Goods and PSU indices have gained between 1-2%. Apart from Banks and FMCG, all the major BSE sectoral indices are trading in green zone.
Reliance Industries is trading higher by 1% after reporting better than expected 1.5% year-on-year (yoy) growth in net profit at Rs 5,490 crore for the second quarter ended September 2013 (Q2).
JP Morgan has upgraded Reliance Industries to "overweight" from "neutral" and raises its target price to 1,000 rupees from 800, citing attractive long-term valuations.
Tata Consultancy Services (TCS has gained by 1.5% ahead of its September-quarter result announcements. Analysts said that a gain of 1-1.5% in the stock prior to the announcement was not much as most of the optimism surrounding its earnings numbers had already been factored in.
Other notable gainers are Wipro, Bharti Airtel, Maruti Suzuki, M&M, SBI, Cipla, NTPC and JSPL.
On the losing side, Hindalco, Coal India, HUL, Tata Motors and ICICI Bank have declined between 0.1-1%.
Among other shares, CMC has surged 6% to Rs 1,452 on BSE after reporting a strong 36% year-on-year (yoy) growth in consolidated net profit at Rs 67.31 crore for the second quarter ended September 2013 (Q2) on back of higher operational income.
Fortis Healthcare has rallied over 6% at Rs 111 after the company has sold its Hong Kong unit Quality Healthcare to insurance major Bupa for $355 million (approx Rs 2,100 crore), a move that will help the company reduce debt.
Bajaj Corp is trading lower by 4% at Rs 242 in otherwise firm market after reporting 6% year-on-year (yoy) decline in net profit at Rs 36 crore for the second quarter ended September 2013 (Q2), on the account of exceptional items marked for acquisition of Ozone Ayurvedics' Nomarks brands and higher expenditure.
The broader markets are under performing the benchmark indices. The market breadth in BSE remains positive with 767 shares advancing and 436 shares declining.
