Markets have started off on a flat note with a negative bias because of weak mixed signals from the US and the Asian markets.

Later, Sensex went up into the positive zone and again dropped into the pessimistic zone to trade on a flat note.

With positive bias, second rung stocks also traded on a flat note.

While buying is seen in realty and metal stocks, selling pressure has emerged in IT counters.

“The markets have a positive bias. 2550 levels held out quite well on the Nifty. At this point auto and IT stocks are showing resilience,” said Salil Sharma, Partner, Kapur Sharma & Co.

Broader market indices like the BSE midcap index surged 0.59%, whereas the BSE smallcap index gained 1.02%.

The 30-share index, BSE Sensex opened with a loss of 1.53 points, at 8,942.01 on Tuesday.

At 10:55 a.m., the 30-share index Sensex lost 31.33 points at 8,912.21 after hitting a high of 8,957.50 and a low of 8,883.24. In contrast, the broad based Nifty stood at 2,773.80, down 3.45 points, after touching a high of 2,783.20 and a low of 2,760.00.

The top gainers in the 30-share index included Mahindra & Mahindra, which gained 1.99%, Tata Steel surged 1.95%, ACC gained 1.90%, Hindalco Industries climbed 1.87%, RCom increased 1.63% and ICICI Bank was up by 1.50%.

The major losers in the Sensex were Tata Consultancy Services, which lost 4.58%, Wipro declined 2.43%, Tata Motors dropped 2.28%, Infosys Technologies slumped 2.00%, Hindustan Unilever sank 1.49%, and Larsen & Toubro lost 1.32%.

Most Asian stock markets are trading higher on Tuesday. Buying is seen in banking shares amid easing fears about the world's hard-hit financial system. On Monday, Britain's Barclays PLC revealed it was performing well so far in 2009.  

Japanese benchmark index Nikkei gained 199.38 points at 7,903.53, while Hong Kong`s Hang Seng index surged 74.57 points to trade at 13,051.28.