Initially I was thinking of getting 750Ti now and use it until R9 370X or GTX 860 comes out. But since everyone here is not recommending anything below 270X, guess I'll go with 270X and use it longer.
My final Config:
Processor: Core i5 4440
Motherboard: Gigabyte GA-B85-D3H
RAM: Corsair Vengeance 4gb
PSU : Seasonic S12II 620W
Hard Disk: WD Blue 1Tb.
Cabinet: Corsair Spec 02
GPU: ASUS R9 270X
Monitor : AOC i2369VM ( Dell has glossy screen, so will go with AOC's matte screen)
Looks like I have gone over my budget. Hope its a good build and will provide me decent gaming experience.