Indian equity markets opened marginally higher on Friday, supported by improved global cues after US President Donald Trump’s recent comments eased geopolitical concerns. The S&P BSE Sensex rose 77.47 points to 82,384.84, while the NSE Nifty50 gained 31.95 points to 25,321.85 in early trade.

Despite the positive start, market sentiment remained cautious due to continued foreign institutional investor (FII) selling. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the pattern of sustained FII selling and domestic institutional investor (DII) buying that dominated markets in 2025 has extended into 2026 as well.

According to Vijayakumar, investors are closely watching whether FIIs will shift back to net buying, with the Union Budget scheduled for February 1 expected to provide clarity through potential market-friendly measures. He added that India’s corporate earnings growth will be the key determinant of any sustained FII inflows, as global investors have alternatives with cheaper valuations and better earnings visibility.

In early trade, Asian Paints emerged as the top gainer, climbing 1.25%, followed by Tata Consultancy Services, which rose 1.05%. Hindustan Unilever, Tech Mahindra and HCL Technologies also traded higher. On the downside, IndiGo slipped 1.57%, while Adani Ports, Eternal, Power Grid Corporation and Larsen & Toubro also faced selling pressure.

Vijayakumar noted that FIIs continue to add short positions on every rally triggered by positive news, keeping the market heavily net short. He said broader market stocks, where FII participation is relatively limited, may witness increased activity driven by Q3 earnings announcements.