Benchmarks trade flat in early deals

Indian equity benchmarks made slightly positive start on Monday and are trading flat in early deals amid lack of direction as investors weighed uncertainty over potential US tariff moves. Foreign fund outflows also dented domestic sentiments. The foreign investors have pulled out nearly Rs 18,000 crore from Indian equities so far this month. Some cautiousness came as RBI’s data showed that India's forex reserves dropped by $9.32 billion to $688.87 billion for the week ended August 1 in one of the highest declines in the recent past. Meanwhile, the Standing Committee on External Affairs, headed by Congress MP Shashi Tharoor, will be briefed today on the latest developments in India's foreign policy.

On the global front, Asian markets are trading mostly higher, following the broadly positive cues from Wall Street on Friday, amid increasing optimism about the US Fed cutting interest rate in August based on last week's weak economic data. The Japanese stock market is closed for Mountain Day holiday. Back home, OMCs are in focus as the Union Cabinet approved compensation amounting to Rs 30,000 crore to the three Public Sector Oil Marketing Companies (IOCL, BPCL & HPCL) for the under-recoveries incurred on sale of domestic LPG.

The BSE Sensex is currently trading at 79899.61, up by 41.82 points or 0.05% after trading in a range of 79772.46 and 80059.46. There were 14 stocks advancing against 15 stocks declining, while 1 stock remain unchanged on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.08%, while Small cap index was down by 0.28%.

The top gaining sectoral indices on the BSE were PSU up by 0.68%, Realty up by 0.41%, Bankex up by 0.37%, Metal up by 0.28% and Basic Materials up by 0.20%, while Consumer Durables down by 1.54%, IT down by 0.41%, FMCG down by 0.30%, Telecom down by 0.28% and TECK down by 0.26% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 2.21%, Trent up by 1.39%, Tata Motors up by 1.03%, Ultratech Cement up by 0.54% and Kotak Mahindra Bank up by 0.49%. On the flip side, Titan Company down by 1.31%, ICICI Bank down by 0.81%, Hindustan Unilever down by 0.62%, Maruti Suzuki down by 0.53% and Infosys down by 0.53% were the top losers.

Meanwhile, for India to become a global manufacturing hub, industry body -- the Confederation of Indian Industry (CII) has pitched for comprehensive land reforms such as the formation of a GST-like Council to enable coordinated and consensus-based reforms and uniform stamp duty rates of 3 to 5 per cent across the country. It said while protectionism and trade wars pose a challenge, India's stable policy framework, strong industrial capabilities, large domestic market and a young workforce, coupled with its reputation as a trusted and capable partner among many nations, set it up as an attractive investment destination.

The CII has proposed establishing Integrated Land Authorities in each state, and also advocated full digitisation of the conversion process, besides suggesting rationalisation of stamp duty rates to a uniform range of 3 to 5 per cent across states. It also recommended that states should move to a conclusive titling system that ensures clear ownership. The global landscape is undergoing seminal transformations, and trade and investment patterns are being reshaped by factors beyond cost. India has long harboured the goal of becoming a leading global hub for manufacturing. It noted that to successfully capitalise on these emerging opportunities and march towards the goal of Viksit Bharat by 2047, India must adopt a comprehensive and forward-looking competitiveness agenda, including factor market reforms such as land reforms.

Further sharing suggestions on land reforms, it said that a robust land reform strategy will not only boost India's manufacturing but also improve investor confidence, unlock rural development potential, and drive inclusive growth. According to CII, while initiatives like the India Industrial Land Bank (IILB) are commendable, several challenges persist. Currently, IILB is largely an information tool. It needs to evolve into a true national land bank that integrates not only land information but also allots land across states through a single digital interface. This would improve transparency and simplify land in acquiring process for businesses.

According to the industry lobby, another major bottleneck is the multiplicity of authorities involved in land-related processes at the state level. To overcome this, it proposed establishing Integrated Land Authorities in each state to act as one-stop agencies overseeing allotments, conversions, dispute resolution, and zoning. It also advocated full digitization of the conversion process, with digitally signed certificates and QR code-enabled third-party verification to ensure transparency and eliminate corruption.

Observing that stamp duty rates in India remain high and vary widely across states, it said this inconsistency adds cost and unpredictability for investors. CII recommended rationalizing these charges to a uniform range of 3 to 5 per cent across states to ensure standardisation while making transactions more affordable. It also called up states to move to a conclusive titling system that ensures clear ownership, thus significantly reducing litigation risks and unlocking land for investments, among other suggestions.

The CNX Nifty is currently trading at 24356.85, down by 6.45 points or 0.03% after trading in a range of 24347.45 and 24428.40. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were SBI up by 2.25%, Grasim Industries up by 2.08%, Trent up by 1.38%, Adani Enterprises up by 1.19% and Tata Motors up by 0.97%. On the flip side, Titan Company down by 1.25%, Hero MotoCorp down by 0.88%, ICICI Bank down by 0.79%, Tata Consumer Products down by 0.72% and Nestle down by 0.69% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted surged 179.07 points or 0.75% to 24,200.33, Jakarta Composite gained 36.6 points or 0.49% to 7,569.99, Shanghai Composite strengthened 18.37 points or 0.51% to 3,653.50 and KOSPI increased 1.71 points or 0.05% to 3,211.72. On the other hand, Straits Times fell 5.45 points or 0.13% to 4,234.38 and Hang Seng was down by 3.82 points or 0.02% to 24,855.00.