At 10:15 am, the BSE S&P Sensex was up 35 points at 38,680 while the NSE Nifty was up 6 points to 11,601.

Among stocks, Bharat Petroleum was down 4.7 per cent, Indian Oil 3.4 per cent, Indiabulls Housing Finance and Yes Bank both nearly 3 per cent. Heavyweight Reliance Industries too was down by 2.3 per cent.

The market sentiment was cheerful over initial corporate earnings and prospects of near-normal rains for the monsoon season.

All sectoral indices except realty traded in the green on National Stock Exchange during early hours.

Tata Motors gained 4.4 per cent, Coal India 2.5 per cent, Tata Consultancy Services 2.4 per cent, Vedanta 1.9 per cent and Hindalco 1.8 per cent.

Healthy buying in the oil and gas and IT stocks helped the indices rise, while a largely negative global market capped gains in the domestic market, analysts said.

The BSE Sensex was trading 35.69 points or 0.09 per cent higher at 38,736.22. The gauge had ended 161.70 points lower at 38,700.53 in the previous session.

Equity benchmark indices closed in the negative zone on Monday as heavyweight scrips like Reliance Industries, State Bank of India and ITC came under selling pressure.

All sectoral indices except FMCG were in the green with realty gaining almost 2 per cent. On Thursday, Fitch retained India's sovereign rating at BBB- with a stable outlook.

The BSE Sensex closed at a record high of 39,057 on Tuesday as equities indices extended gains for the fourth consecutive day amid a volatile trading session.