IGI Logo

Indian equity benchmarks are likely to get an optimistic start tracking firm global cues. Investors will be eyeing India and the US’ consumer price index (CPI) inflation for the month of January scheduled to be released today. Besides, India’s Industrial Production data for December will be released later in the day.

Some of the key factors to be watched:

Net direct tax kitty swells 15%: The government data showed that net direct tax collection grew 14.69 per cent to over Rs 17.78 lakh crore so far this fiscal. As per the data released by the Central Board of Direct Taxes (CBDT), mop up from net non-corporate taxes, which include mainly personal income tax, grew 21 per cent year-on-year to about Rs 9.48 lakh crore.

India, Israel aim 10x growth in bilateral trade: Commerce and industry minister Piyush Goyal said there can be tenfold growth in bilateral trade between India and Israel, coupled with investments from both sides in the next 12–13 years and the current bilateral trade is sub-optimal.

Speedy rebound in growth on strong foundation: Union Finance Minister Nirmala Sitharaman said growth in India is witnessing a speedy rebound on account of a strong economic foundation and the government will take measures to ensure that it remains the fastest-growing economy.

Metal stocks will be in focus: The Indian stainless-steel industry is facing a significant challenge with the looming threat of renewed tariffs under US President Donald Trump’s proposed trade policies. Indian Stainless Steel Development Association (ISSDA) said if these tariffs are enforced, India’s stainless-steel exports could suffer substantial setbacks, leading to disruptions in global supply chains and increased costs for manufacturers and consumers alike.

On the global front: The US markets ended mostly higher on Tuesday as gains in Coca-Cola and Apple offset losses in Tesla, while investors parsed Federal Reserve Chair Jerome Powell's latest comments. Asian markets are trading in green on Wednesday as investors digested US President Donald Trump’s tariff impact on regional economies.

Back home, Indian equity benchmarks ended lower for fifth consecutive session on Tuesday weighed down by losses in Realty, Industrials and Healthcare stocks. Finally, the BSE Sensex fell 1018.20 points or 1.32% to 76,293.60, and the CNX Nifty was down by 309.80 points or 1.32% to 23,071.80.      

Some of the important factors in trade: 

Fresh US tariffs reignited trade war fears: Traders were cautious as fears over US tariffs under the Trump administration intensified, with fresh 25 per cent tariffs announced on US steel and aluminium imports, without exceptions or exemptions.  The recent moves are set to stoke inflationary pressure in the US and delay a likely shallow rate cut cycle there.

Investors eyed domestic economic data: Investors are looking ahead to the upcoming domestic economic data - consumer price index (CPI) and index of industrial production (IIP) - to be released this week.

Sustained FII outflows: Foreign institutional investors (FIIs) offloaded equities worth Rs 2,463.72 crore in the capital markets on a net basis on Monday, according to exchange data. 

Above views are of the author and not of the website kindly read disclaimer