Indian markets rise on growth budget optimism despite FII selling pressure

Indian equity benchmarks advanced on February 2, 2026, recovering from a muted start as gains in metal and energy stocks supported sentiment. Investors are recalibrating positions after a growth-focused Union Budget that underscores fiscal discipline alongside expansion, strengthening expectations of higher GDP and corporate earnings ahead.

However, persistent foreign institutional investor (FII) outflows and recent Securities Transaction Tax (STT) adjustments in derivatives trading are adding a layer of near-term volatility. Market strategists suggest retail investors stay disciplined through systematic investment plans (SIPs) as markets balance strong domestic fundamentals with external headwinds.