Benchmark BSE Sensex index gains 0.14 percent while the broader NSE Nifty index is up 0.13 percent in cautious trade ahead of the budget due on July 10, after setting record highs on Thursday for a second consecutive session.
However, sentiment is still upbeat as foreign institutions, who have invested $10.3 billion so far this year, bought Indian shares worth 9.51 billion rupees ($159.27 million) on Thursday, exchange and regulatory data show.
Healthcare stocks lead gains with Dr Reddy's Laboratories Ltd gaining 1.9 percent and Sun Pharmaceutical Industries Ltd up 0.8 percent.
Bharti Airtel Ltd gains as much as 2.5 percent after the Reserve Bank of India increases limit for overseas investors to buy shares in the company.
Among blue-chips, Housing Development Finance Corp down 0.6 percent and Larsen & Toubro Ltd down 0.5 percent on profit-taking.
($1 = 59.7100 Indian rupees)