The BSE Sensex trades flat ahead of conclusion of two-day US Federal Reserve meeting later in the day that is expected to result in the start of a rollback of its stimulus.
The BSE Sensex is trading up 30 points, while the broader NSE index is up 5 points tracking weak Asian peers with MSCI's broadest index of Asia-Pacific shares outside Japan off a slight 0.3 percent.
Expectations are that the Federal Open Market Committee will be measured with any cuts to its $85 billion in monthly asset buying, while also seeking to reassure investors that the day of an actual policy tightening is still distant.
Goldman Sachs remains "underweight" on Indian shares in its Asia Pacific portfolio and maintains its Nifty target at 5,700, saying the macro outlook remains challenged, which coupled with tighter financial conditions, may lead to lower valuations.
Shares in India's Dr.Reddy's Laboratories up 1.4 percent following the U.S. drug regulator's approval for selling a generic version of Celgene Corp's anti-cancer drug Vidaza. DRL shares rose 3.6 percent on Tuesday.