However, the dollar gains against most major global currencies overseas limited the gains for the domestic unit.
A 7.5 percent growth in industrial output in January and selling of the American currency by exporters supported the rupee, forex dealers said.
Yesterday, the rupee ended higher by 13 paise to close at 65.04 against the US currency on the back of foreign fund inflows after sharp gains in equity markets and weakness in the dollar against global currencies.
9:45 am Buzzing Stocks: Shares of Bank of India rose 10 percent on the back of recovery of Rs 7,000 crore from other banks.
The bank has recovered Rs 7,000 crore worth Standby Letters of Credit (SLOCs) in the last two months and the balance of Rs 2,000 crore would be recovered in another two months, a top bank official said.
This recovery will substantially improve the bank's balance sheet, Bank of India Executive Director N Damodharan told reporters.
The bank has embarked on a plan, following restrictions from RBI on it under the Prompt Corrective Action (PCA) framework. The bank is aiming to bring down its net NPA ratio substantially, to below 6 percent, he said.
The company had reported net loss of Rs 2,341.20 crore for the December quarter 2017, against profit of Rs 107.72 crore in year-ago.
Its gross non-performing assets (NPA) were sharply higher at 16.93 percent in Q3 against 12.62 percent in previous quarter while net NPAs were also higher at 10.29 percent compared to 6.47 percent QoQ.
9:35 am Market Update: Benchmark indices continued to consolidate in morning after a 2 percent rally seen in previous session, following tepid global cues.
The 30-share BSE Sensex was up 10.45 points at 33,928.39 while the Nifty continued to hold the 10,400 levels, rising 1.90 points to 10,423.30.
The broader markets outperformed frontliners, with the Nifty Midcap index rising 0.3 percent. About two shares advanced for every share falling on the BSE.
9:27 am Stake Sale: TCS shares fell more than 5 percent in morning after the large block deal trade.
Tata Sons, the promoter of major operating companies of the Tata group, was planning to raise around Rs 8,200 crore by selling stake in the IT major, according to investment banking sources.
Tata Sons was looking to sell around 2.83 crore shares amounting to about 1.48 percent stake in TCS, the sources added.
After the proposed share sale, Tata Sons' holding in Tata Consultancy Services (TCS) would come down to around 72 percent from 73.52 percent as on December, 2017.
The sources said Tata Sons intends to use the proceeds from the share sale to reduce debt in the group's telecom arm Tata Teleservices which has debt of around Rs 40,000 crore.
Last year in October, Tata Group had agreed to sell its loss-making mobile telephony business to Bharti Airtel on "a debt-free cash-free basis".
9:20 am Master Supply Agreement: Having put their merger on hold, ACC Ltd and Ambuja Cements - the two Indian units of LafargeHolcim - today said they plan to enter into a 'master supply agreement' with each other.
Both the companies have sought approval from their shareholders to "enter into, execute and deliver the master supply agreement" with each other, they said in separate regulatory filings.
The agreement is for supply of cement, clinker and raw materials such as fuels, fly ash, slag and gypsum. This would also include spare parts.
"Each individual contract/arrangement/ transaction shall be carried out by way of purchase order based on the requirement of the company," it added.
9:15 am Market Check: Benchmark indices opened mildly lower on Tuesday after the January's industrial output and February's CPI inflation data announced later in the day yesterday. It was a bit of profit booking after yesterday's more than 600 points rally on the Sensex.
The 30-share BSE Sensex was down 25.52 points at 33,892.42 and the 50-share NSE Nifty fell 7.50 points to 10,413.90.
TCS was biggest loser among Nifty50 stocks, falling more than 5 percent after big block deal.
Nifty Midcap was down 38 points and Nifty Bank was flat.
UCO Bank, IDBI Bank, PNB, Canara Bank, Bank of Baroda, Balrampur Chini, Shree Renuka, Dhampur Sugar, InterGlobe Aviation and Biocon fell up to 5 percent.
Future Consumer rallied 6 percent.
Industrial output expanded at 7.5 percent in January, from 7.1 percent in previous month while retail inflation fell to a 4-month low of 4.44 percent in February from 5.07 percent in previous month.
Asian stock markets were lower as Washington's policies hit regional steel producers. The Nikkei 225, Shanghai Composite, Hang Seng and ASX 200 slipped 0.10-0.6 percent.
The S&P 500 and the Dow Jones Industrial Average slumped on Monday as the US tariffs signed into law last week by President Donald Trump weighed on industrials.