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Indian equity markets are likely to make positive start on Wednesday amid positive global cues. Some support will come as government data showed India's consumer price inflation eased more-than-expected in July. 

Some of the key factors to be watched:

Retail inflation in July slows to 8-year low of 1.5%: Government data showed that retail inflation slowed to an 8-year low of 1.55 percent in July, falling below the Reserve Bank's comfort zone for the first time since January 2019, helped by subdued prices of food items. 

Net direct tax mop-up falls nearly 4% to Rs 6.64 lakh crore this fiscal on higher refunds: Government data showed that net direct tax collection dipped 3.95 percent to Rs 6.64 lakh crore so far this fiscal, mainly on account of higher refunds.

India signs trade cooperation pact with Zambia to boost cooperative exports: Cooperation Minister Amit Shah said that India has signed an agreement with Zambia to promote trade alliances between cooperatives of both nations.

UK trade pact offers big opportunity for Indian textile exporters amid US tariffs: Commerce ministry said that India's free trade pact with the UK will help boost shipments of garments, home textiles, carpets and handicrafts, with textile exports projected to rise 30 to 45 percent by 2030.

Semiconductor stocks will be in focus: The Union Cabinet approved four more semiconductor projects under India Semiconductor Mission (ISM). These four approved proposals will setup semiconductor manufacturing facilities with cumulative investment of around Rs 4,600 crore.

On the global front: The U.S. markets ended in green on Tuesday, following the release of the Labor Department's closely watched report on consumer price inflation in the month of July. Asian markets are trading in green on Wednesday, tracking positive cues from Wall street.

Back home, Indian equity benchmarks failed to build on Monday’s gains and ended nearly half a percent lower in a highly volatile trade on Tuesday, dragged down by blue-chip bank stocks and caution ahead of domestic and US inflation data. Investors were in a wait-and-watch mode ahead of the US CPI inflation data and are also awaited cues from the US-Russia talks on August 15. Finally, the BSE Sensex fell 368.49 points or 0.46% to 80,235.59 and the CNX Nifty was down by 97.65 points or 0.40% to 24,487.40.

Some of the important factors in trade:

Trump tariffs to impact 55% of total merchandise exports to US: Amid concerns over India’s exports, Minister of State for Finance Ministry Pankaj Chaudhary has said that about 55 per cent of the country’s total merchandise exports to the US will be subject to 25 per cent reciprocal tariff. 

India bans imports of certain jute products, ropes from Bangladesh through all land routes: The Directorate General of Foreign Trade (DGFT) has said that India banned imports of certain jute products and ropes from Bangladesh through all land routes with immediate effect, amid strained relations between the two countries. However, it said these imports are allowed through the Nhava Sheva Seaport. 

Lok Sabha passes new Income Tax Bill: The Lok Sabha has passed the revised Income Tax Bill, 2025 without any debate. The new Income Tax Bill will allow individuals to claim TDS refunds even if they fail to file I-T return within due date. The new Income Tax Bill, which from April 1, 2026, will replace the Income Tax Act, 1961.

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