Indian equity benchmarks are expected to open on a positive note, tracking strong global trends. Investors will closely monitor India and the US’ Consumer Price Index (CPI) inflation data for January, set to be released today. Additionally, India’s Industrial Production data for December will also be announced later in the day.

Key Market Factors to Watch:

1. Net Direct Tax Collection Rises 15%
Government data reveals that net direct tax collection surged 14.69% to over RS 17.78 lakh crore so far this fiscal. According to the Central Board of Direct Taxes (CBDT), net non-corporate tax collection, primarily personal income tax, jumped 21% year-on-year to approximately RS 9.48 lakh crore.

2. India and Israel Target 10x Growth in Trade
Commerce and Industry Minister Piyush Goyal stated that bilateral trade between India and Israel could increase tenfold over the next 12–13 years. He emphasized the need for stronger investments from both nations, as the current trade volume remains below its potential.

3. Strong Economic Growth Momentum Continues
Union Finance Minister Nirmala Sitharaman highlighted that India’s economy is witnessing a rapid recovery due to its strong fundamentals. The government aims to maintain India’s position as the fastest-growing major economy.

4. Metal Stocks Under Pressure Amid Tariff Concerns
The Indian stainless-steel industry faces significant uncertainty due to the possibility of renewed tariffs under former US President Donald Trump’s proposed trade policies. The Indian Stainless Steel Development Association (ISSDA) warned that these tariffs could severely impact India’s stainless-steel exports, disrupting global supply chains and increasing costs.

Global Market Update:

US markets ended mostly higher on Tuesday as gains in Coca-Cola and Apple offset losses in Tesla. Investors analyzed Federal Reserve Chair Jerome Powell's latest comments. Meanwhile, Asian markets are trading in the green on Wednesday as investors assessed Trump’s proposed tariff impact on regional economies.

Domestic Market Recap:

Indian equity benchmarks closed lower for the fifth straight session on Tuesday, weighed down by losses in Realty, Industrials, and Healthcare stocks.

• BSE Sensex: Fell 1018.20 points (-1.32%) to 76,293.60
• NSE Nifty: Dropped 309.80 points (-1.32%) to 23,071.80

Key Trade Factors to Watch:

1. Renewed US Tariffs Stoke Trade War Fears
Fresh concerns emerged as the Trump administration announced a 25% tariff on US steel and aluminum imports without exceptions. These measures are expected to fuel inflationary pressure in the US and delay potential interest rate cuts.

2. Investors Await Key Domestic Economic Data
Market participants are keenly watching the release of India's CPI inflation and Industrial Production (IIP) data, which will provide insights into the country’s economic health.

3. Continued FII Outflows Weigh on Sentiment
Foreign institutional investors (FIIs) sold equities worth RS 2,463.72 crore in the capital markets on a net basis on Monday, according to exchange data.

Markets will remain volatile as investors react to global economic cues and key domestic data releases.