The Indian benchmark indices opened in the green in early morning trade and then dipped as invetsors await Finance Minister Arun Jaitley to table the Union Budget 2017.
What fueled the sentiment was expectations of the US Federal Reserve to keep interest rates unchanged in its first policy decision since President Donald Trump took office, as the central bank awaits greater clarity on his economic policies, Reuters reported.
At 9.45 AM, the S&P BSE Sensex was trading 27,662, up 6.17 points while the Nifty50 was trading 8,565, up 4.15 points.
"The immediate support for the Nifty index is placed around 8560 - 8500; whereas the index is expected to rally up to 8678 - 8737 in the short term," said an Angel Broking report.
"Tomorrow's session is expected to trade with enhanced volatility because of the Union Budget an hence, momentum traders opted to take some money off the table ahead of the event." added the report.
Shares of SBI was the top performer in early trade, gaining over 1.50 per cent
Bharti Airtel and ICICI Bank were the morning laggards, falling as much as 1.45 per cent on the BSE.
Former Union minister and Indian Union Muslim League leader E Ahamed had passed away early today after he suffered a cardiac arrest, a senior doctor has confirmed.
This has led to the question of a delay in the presentation of Union Budget 2017.
The Government said that they are still in talks with the political parties to further discuss the plan of action. Sources told India Today Group that the Congress has been insisting on the adjournment of the House.
The Congress party will hold a cruicial meeting at 9:30 AM over the possibility of delaying the Budget.
Among the Asian stocks, China's Shanghai Composite Index was trading flat, up 10 points, Hong Kong's Hang Seng Index was down over 0.75 per cent while Japan's Nikkei was trading 0.10 per cent higher.
The dollar was put on the defensive in Asia after the Trump administration accused Germany and Japan of devaluing their currencies to gain a trade advantage, fuelling a risk-off mood that also kept stocks subdued.
On Wall Street, the S&P 500 fell on Tuesday for a fourth consecutive session. However, it still ended higher for the month.
The Dow dipped 0.54 per cent, while the S&P 500 lost 0.09 per cent and the Nasdaq 0.02 per cent.