Indian equity benchmarks remained in green throughout the day and ended higher on Wednesday on buying in Healthcare, Metal and Auto stocks as steady US inflation data propelled a sharp rally in global markets. Besides, retail inflation slowing to an 8-year low of 1.55 per cent in July also led to the positive trend in domestic equities. However, uncertainties over trade tariffs and foreign fund outflows restricted further gains. 

Some of the important factors in today’s trade:

India's FTA with UK offers big opportunity for Indian textile exporters amid US tariffs: Commerce ministry has 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 30-45 per cent by 2030. 

Rupee rises against US Dollar: Indian rupee appreciated against the US dollar, as a weak greenback and a positive momentum in domestic equity markets enthused investors. Weak crude oil prices and cooling domestic inflation also supported the rupee. 

India signs trade cooperation pact with Zambia to boost cooperative exports: Union Home Minister and Minister of Cooperation Amit Shah has said that India has signed an agreement with Zambia to promote trade alliances between cooperatives of both nations. The cooperation ministry is working to strengthen India's cooperative export ecosystem through Indian missions abroad. 

Direct tax collection falls: The government data showed net direct tax collection dipped 3.95 per cent to Rs 6.64 lakh crore so far this fiscal, mainly on account of higher refunds. 

Global front: European markets were trading higher amid continued optimism the Fed will reduce interest rate next month, and on slightly easing concerns about tariff after the U.S. decided to extend its pause on higher tariffs against China till November 10. Asian markets ended higher as in-line U.S. inflation reading bolstered speculation the Federal Reserve will cut interest rates by 25 basis points in September, bringing forward its easing forecast amid fears of a weakening labor market.  

Finally, the BSE Sensex rose 304.32 points or 0.38% to 80,539.91 and the CNX Nifty was up by 131.95 points or 0.54% to 24,619.35.    

The BSE Sensex touched high and low of 80,683.74 and 80,319.00 respectively. There were 21 stocks advancing against 9 stocks declining on the index.  

The broader indices ended in green; the BSE Mid cap index rose 0.56%, while Small cap index was up by 0.58%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.76%, Metal up by 1.22%, Auto up by 1.18%, Capital Goods up by 1.01%, Consumer discretionary up by 0.96%, while Oil & Gas down by 0.03% and FMCG down by 0.03% were the few losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 2.25%, Eternal up by 2.08%, Kotak Mahindra Bank up by 1.56%, Tata Motors up by 1.48% and Mahindra & Mahindra up by 1.42%. On the flip side, Adani Ports &SEZ down by 0.78%, ITC down by 0.58%, Ultratech Cement down by 0.46%, Titan Company down by 0.34% and Axis Bank down by 0.22% were the top losers.

Meanwhile, the government data has showed that net direct tax collection dipped 3.95 per cent to Rs 6.64 trillion so far (between April 1-August 11) this fiscal (FY26) over Rs 6.91 trillion collected in the same period last fiscal (2024-25). The fall in net direct tax collection was mainly on account on higher refunds. Direct tax includes taxes on income paid by companies, individuals, and by professionals, and other entities.

Refunds issued so far this fiscal jumped 9.81 per cent to Rs 1.35 trillion from Rs 1.23 trillion in the same period of last year. Net corporate tax collection stood at about Rs 2.29 trillion, while non-corporate tax (which includes individuals, Hindu Undivided Families (HUFs) and firms) was at Rs 4.12 trillion. Securities Transaction Tax (STT) mop-up was Rs 22,362 crore between April 1-August 11. 

Gross collections (before refunds) stood at Rs 7.99 trillion between April 1-August 11, a 1.87 per cent dip over Rs 8.14 trillion in the year-ago period. In the current fiscal (2025-26), the government has projected its direct tax collection at Rs 25.20 trillion, up 12.7 per cent year-on-year. The government aims to collect Rs 78,000 crore from STT in FY26.

The CNX Nifty traded in a range of 24,664.55 and 24,535.25. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 8.20%, Hindalco up by 5.09%, Dr. Reddy's Lab up by 2.71%, Cipla up by 2.52% and Hero MotoCorp up by 2.35%. On the flip side, Indusind Bank down by 1.26%,

Adani Ports &SEZ down by 0.72%, ITC down by 0.52%, Titan Company down by 0.43% and Tech Mahindra down by 0.35% were the top losers. 
European markets were trading higher; UK’s FTSE 100 increased 12.14 points or 0.13% to 9,159.95, France’s CAC rose 43.38 points or 0.56% to 7,796.80 and Germany’s DAX gained 219.42 points or 0.91% to 24,244.20.