The Indian share market is likely to begin Wednesday’s session on a positive note, extending gains from the previous day amid supportive global cues and optimism surrounding the India-European Union trade deal. Early indications from Gift Nifty futures point to a stronger opening, suggesting the Nifty 50 could open above Tuesday’s close of 25,175.4.

On Tuesday, benchmark indices ended higher, with the Nifty gaining 0.5% after India and the EU agreed to eliminate tariffs on nearly 90% of Indian goods, improving sentiment around India’s trade outlook. Global markets also provided support, with Asian equities trading higher ahead of the US Federal Reserve’s policy decision, while a weaker US dollar boosted risk appetite.

However, caution persists as foreign portfolio investors continued to sell Indian equities. Provisional data shows FPIs sold shares worth Rs 3,068.49 crore on Tuesday, taking total January outflows to over Rs 43,700 crore, the highest monthly selling in a year.

Market experts expect volatility to remain elevated ahead of the Union Budget presentation on February 1, 2026, and amid mixed global signals. While technical indicators suggest support at lower levels, analysts advise a selective and disciplined approach until clearer directional cues emerge.