Market Outlook 12 August: Key Market Trends, IPO Updates & Stock Picks

Market Outlook 12 August

Good morning and welcome to your Market Outlook for 12 August. After a weekend pause, the markets kicked off the week on a strong note with notable gains across key indices. The Nifty 50 surged 186 points, rising 0.76% to close at 24,549.45, while the Sensex climbed an impressive 656 points, up 0.82%, settling at 80,514.19. Bank Nifty also gained momentum, advancing 0.78%, supported by broad-based buying in the financial sector. The Nifty IT index added 0.32%, and even the S&P BSE SmallCap index followed suit with a modest 0.34% gain.

This positive start sets the tone for a potentially active trading session ahead, with investors digesting global cues, domestic economic data, and sector-specific developments. In today’s newsletter, we will analyze the technical outlook, highlight key news and stocks to watch, review IPO updates, and bring you a promising stock in focus.

Let’s dive in!

Index Outlook – Market Outlook 12 August

According to Equity Pandit’s latest analysis, the key indices remain under cautious watch as the negative trend persists heading into today’s session.

SENSEX (80,604)

The Sensex continues its negative momentum. Traders holding short positions should maintain them with a daily closing stoploss at 80,853. Fresh long positions may be considered only if the Sensex closes above this level.

Support Levels: 80,039 – 79,474 – 79,175
Resistance Levels: 80,903 – 81,201 – 81,766
Tentative Trading Range: 81,304 – 79,903

NIFTY (24,585)

The Nifty also remains in a bearish trend. Short holders are advised to hold their positions with a daily closing stoploss at 24,673. Any fresh long entries should be initiated only if Nifty closes above 24,673.

Support Levels: 24,421 – 24,258 – 24,168
Resistance Levels: 24,675 – 24,765 – 24,928
Tentative Trading Range: 24,798 – 24,371

BANKNIFTY (55,511)

Bank Nifty continues its negative bias. Those holding short positions should keep them with a stoploss at 55,796. Long positions may be initiated if Bank Nifty closes above 55,796 levels.

Support Levels: 55,098 – 54,686 – 54,444
Resistance Levels: 55,753 – 55,995 – 56,407
Tentative Trading Range: 56,047 – 54,974

Traders are encouraged to watch these key technical levels closely as part of today’s Market Outlook 12 August and adjust strategies accordingly.

News and Stocks That Might Be Impacted – Market Outlook 12 August

As part of today’s Market Outlook 12 August, several key developments across sectors may influence market sentiment and stock movement. Here’s a detailed look at the latest news and the stocks that could be impacted:

1. State-Owned Shipping Corp Plans Massive Fleet Expansion

The Shipping Corporation of India (SCI), the country’s largest shipping line, is set to acquire 26 India-made ships worth ₹19,820 crore ($2.3 billion) to boost domestic shipbuilding. This initiative is part of a broader government effort to enhance indigenous shipbuilding and reduce foreign dependence. SCI’s fleet, currently 55 ships strong, will see significant expansion with deliveries staggered over coming years.

Impact Stocks to Watch:

• Shipping Corporation of India (SCI) – fleet expansion could drive future revenue growth
• Domestic Shipbuilders – companies involved in manufacturing could see order inflows
• Petroleum, Gas, Steel, and Fertilizer Sector Stocks – related buyers planning ship purchases may see long-term benefits

2. RBI Intervenes to Support Rupee Amid Sharp Weakness

The Reserve Bank of India reportedly sold over $5 billion in onshore and offshore markets this month to stabilize the rupee near record lows. This marks a potential shift from RBI’s earlier restrained stance amid pressure from rising US tariffs on Indian goods. The rupee has depreciated over 2% this year, posing risks of imported inflation.

Impact Stocks to Watch:

• Import-Heavy Companies – may face margin pressure due to currency volatility
• Export-Oriented Firms – could benefit from a weaker rupee improving competitiveness
• Banks and Financials – monitoring currency-linked risks and potential credit impacts

3. Keystone Realtors Bags ₹7,700 Crore Redevelopment Projects

Mumbai-based Keystone Realtors secured three large redevelopment projects with a combined revenue potential of over ₹7,700 crore. The company also reported a 75% YoY rise in quarterly pre-sales and plans further land acquisitions to fuel growth. However, the recent quarter showed a 44% drop in net profit due to accounting changes.

Impact Stocks to Watch:

• Keystone Realtors Ltd – strong business development and sales momentum
• Other Real Estate Developers in Mumbai Metropolitan Region – potential increased competition and sectoral growth

4. Bio Medica Laboratories Files Draft IPO on NSE Emerge Platform

Bio Medica Laboratories, an Indore-based pharmaceutical manufacturer specializing in injectable formulations, filed its Draft Red Herring Prospectus for an IPO on the SME platform. The company boasts strong revenue and profit growth, high EBITDA margins, and plans to use proceeds for capacity expansion and debt repayment.

Impact Stocks to Watch:

• Bio Medica Laboratories Ltd – potential growth stock in the pharma SME space
• Other Pharmaceutical SMEs – IPO could spur investor interest in the segment

5. Dividend Announcements Across Key Sectors

Several companies have declared dividends with ex-dividend dates on August 12, 2025. Notable payouts include ICICI Bank (₹11/share), Grasim Industries (₹10/share), and Axtel Industries (₹6/share), among others across banking, chemicals, engineering, textiles, and infrastructure sectors.

Impact Stocks to Watch:

• ICICI Bank, Grasim Industries, Axtel Industries – dividend payouts may attract yield-focused investors
• Other Dividend-Paying Companies – short-term trading activity may increase ahead of record dates

Company Name	Dividend Type	Amount (₹/share)	Ex-Dividend Date	Record Date
Arvind Fashions Ltd	Final	1.60	12-Aug-2025	12-Aug-2025
Axtel Industries Ltd	Final	6.00	12-Aug-2025	12-Aug-2025
Dwarikesh Sugar Ind.	Final	0.50	12-Aug-2025	12-Aug-2025
Grasim Industries Ltd	Dividend	10.00	12-Aug-2025	12-Aug-2025
H.G. Infra Engineering	Final	2.00	12-Aug-2025	12-Aug-2025
ICICI Bank Ltd	Dividend	11.00	12-Aug-2025	12-Aug-2025
India Pesticides Ltd	Dividend	0.75	12-Aug-2025	12-Aug-2025
KIFS Financial Svcs Ltd	Final	1.50	12-Aug-2025	12-Aug-2025
NGL Fine Chem Ltd	Final	1.75	12-Aug-2025	12-Aug-2025
RITES Ltd	Interim	1.30	12-Aug-2025	12-Aug-2025

Stay tuned for how these developments unfold through the trading day as part of our Market Outlook 12 August coverage. Adjust your watchlist accordingly and monitor market reactions to these evolving stories.

IPO Update

The IPO market continues to be active with several mainboard and SME IPOs opening, closing, or recently listed. Investors are advised to track subscription trends, GMPs, and price movements carefully as market dynamics evolve. Here is the latest update on upcoming and ongoing IPOs as per the Market Outlook 12 August.

Mainboard IPOs

Name	Status	GMP (₹)	Price (₹)	Open Date	Close Date	Listing Date
Vikram Solar IPO	Upcoming	—	TBD	—	—	—
Patel Retail IPO	Upcoming	24 (9.41%)	279	19-Aug	21-Aug	26-Aug
Shreeji Shipping Global	Upcoming	9.5 (3.77%)	261.5	19-Aug	21-Aug	26-Aug
Regaal Resources IPO	Upcoming	22 (21.57%)	124	12-Aug	14-Aug	20-Aug
BlueStone Jewellery IPO	Open	9 (1.74%)	517	11-Aug	13-Aug	19-Aug
JSW Cement IPO	Closed	5 (3.40%)	147	7-Aug	11-Aug	14-Aug
All Time Plastics IPO	Closed	8 (2.91%)	275	7-Aug	11-Aug	14-Aug
Knowledge Realty Trust	Closed	1.5 (1.50%)	101.5	5-Aug	7-Aug	18-Aug
Highway Infrastructure	Closed	24 (34.29%)	70	5-Aug	7-Aug	12-Aug

SME IPOs

Name	Status	GMP (₹)	Price (₹)	Open Date	Close Date	Listing Date
Infraprime Logistics	Upcoming	—	—	—	—	—
Current Infraprojects	Upcoming	—	—	—	—	—
Mahendra Realtors	Upcoming	6 (7.06%)	91	12-Aug	14-Aug	20-Aug
Icodex Publishing Sol.	Open	14 (13.73%)	102	11-Aug	13-Aug	19-Aug
Medistep Healthcare	Open	10 (23.26%)	43	8-Aug	12-Aug	18-Aug
Star Imaging	Open	— (0.00%)	142	8-Aug	12-Aug	18-Aug
ANB Metal Cast	Open	— (0.00%)	156	8-Aug	12-Aug	18-Aug
Connplex Cinemas	Closed	15 (8.47%)	177	7-Aug	11-Aug	14-Aug
Sawaliya Foods Products	Closed	4 (3.33%)	120	7-Aug	11-Aug	14-Aug

Summary – Market Outlook 12 August:
The IPO segment remains vibrant with key mainboard IPOs like Regaal Resources and Patel Retail opening soon, while others like JSW Cement and All Time Plastics have recently closed with strong subscription numbers. On the SME side, Medistep Healthcare and Icodex Publishing continue to attract investor interest with healthy subscription levels. As per the Market Outlook 12 August, investors should closely monitor GMP movements, subscription status, and listing timelines to make informed decisions. Stay tuned for detailed analysis and subscription trends in the coming editions.

Stocks in Radar – Market Outlook 12 August

State Bank of India (SBI)
Recommendation: Research byLKP Securities Limited
Current Market Price (₹): 804
12-Month Price Target (₹): 908
Potential Return: 13%

In this Market Outlook 12 August, State Bank of India stands out as a fundamentally strong pick amid an improving macroeconomic environment. The country’s largest public sector bank showcased resilience and operational strength in Q1 FY26, positioning itself well to benefit from the anticipated economic recovery.

Solid Quarterly Performance Amid Challenges

SBI’s quarterly results reflected a balance of growth and prudence. Despite a seasonally weak quarter and headwinds from rising deposit costs, the bank managed to maintain flat net-interest income (NII) at ₹411 billion year-on-year. This was driven by broad-based loan growth of 11.9%, which included significant traction in retail (+12.6%), agriculture (+12.7%), small and medium enterprises (SME) (+19.1%), and corporate segments (+5.7%).

The net interest margin (NIM) contracted 30 basis points to 2.9%, impacted primarily by higher cost of deposits and softer yields on advances following the recent repo rate cuts. However, this margin pressure is expected to be temporary, as the bank’s limited exposure to repo-linked loans cushions it from sharper declines. Management anticipates a U-shaped NIM recovery, with margins stabilizing by Q4 FY26 due to deposit repricing and a likely CRR cut from September.

Efficiency and Profitability Improvements

SBI’s operational efficiency remains a bright spot. Pre-provision operating profit rose by 15.5% year-on-year to ₹305 billion, supported by a substantial 55.4% jump in other income to ₹242 billion, largely thanks to treasury gains. Operating expenses grew modestly at 7.9%, leading to an improved cost-to-income ratio of 47.7%, down by 170 basis points from last year.

The bank’s net profit after tax (PAT) grew 12.5% year-on-year to ₹192 billion, despite higher provisioning expenses (₹48 billion versus ₹34 billion last year), which were partly seasonal.

Robust Asset Quality Maintained

Asset quality continues to be a key strength for SBI. Gross non-performing assets (NPAs) stood at 1.83%, nearly flat compared to previous quarters, while net NPAs improved to 0.47%. Healthy recoveries and higher write-offs contributed to this stability. The slippage ratio increased slightly to 0.75%, mostly due to agriculture and MSME segments, but the bank has already reversed ₹16 billion of fresh slippages, signaling limited deterioration risks.

The Provision Coverage Ratio (PCR) remains robust at 74.5%, providing a strong buffer against potential credit losses. SMA (Special Mention Accounts) levels are moderate, suggesting limited near-term stress in the loan book.

Strong Capital Position and Growth Prospects

SBI’s capital adequacy ratio (CAR) improved by 77 basis points year-on-year to 14.63%, and the Common Equity Tier 1 (CET1) ratio rose to 11.10%, both comfortably above regulatory requirements. This capital strength supports the bank’s growth plans, with management targeting credit growth of around 12-13% for FY26. A recent equity raise of ₹250 billion further bolsters the bank’s capacity to extend loans by approximately ₹2.5 trillion.

The bank is strategically focusing on expanding high-growth areas such as unsecured personal loans (especially to government employees), home loans, and opportunistic gold loans. While cautious on overleveraging customers in some segments, SBI continues to push for digital transformation and improvement in underwriting standards.

Outlook

Overall, SBI’s performance in Q1 FY26 highlights its ability to navigate a challenging interest rate environment and maintain healthy asset quality and profitability. Its diversified loan book, strong capital base, and strategic focus on technology and growth segments make it a reliable play in the current market.

With a Sum-of-the-Parts (SOTP)-based target price of ₹908 (valuing the core bank at 1.3x FY27E BVPS plus ₹119 per share for subsidiaries), SBI offers an attractive 13% upside from current levels. This reinforces our BUY recommendation for SBI in this Market Outlook 12 August newsletter.

Conclusion

The markets kicked off the week on a positive note with broad-based gains across key indices, reflecting cautious optimism amid mixed domestic and global cues. Our Market Outlook 12 August highlights that while technical charts suggest a continuing negative trend in major indices like SENSEX, NIFTY, and BANKNIFTY, there are clear levels to watch for potential breakout or further corrections. Traders should manage risk carefully and consider fresh long positions only upon decisive closes above key resistance levels.

On the news front, significant government-backed initiatives like the massive shipping fleet expansion and RBI’s proactive currency interventions underscore ongoing efforts to strengthen the domestic economy and financial stability. Meanwhile, corporate updates such as Keystone Realtors’ strong project acquisitions and Bio Medica Laboratories’ promising IPO reflect evolving growth opportunities across sectors.

The IPO space remains lively with a mix of SME and mainboard offerings, presenting fresh investment avenues. Notably, the Regaal Resources and Patel Retail IPOs continue to garner attention with healthy grey market premiums, signaling positive investor sentiment.

In stocks to watch, State Bank of India stands out as a fundamentally robust pick positioned to capitalize on improving macroeconomic conditions, offering a compelling risk-reward profile backed by strong capital, diversified growth, and stable asset quality.

As always, investors are advised to stay vigilant, diversify portfolios, and align trades with their risk appetite while keeping an eye on key technical and fundamental triggers highlighted in this Market Outlook 12 August.

Stay informed, trade smart, and have a profitable week ahead!

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