Market Outlook 18 August: Index, IPOs, and Stocks to Watch

Introduction – Market Outlook 18 August

Good morning and welcome to your Market Outlook 18 August edition.

Indian equity markets finally snapped a six-week losing streak and ended the truncated Independence Day week on a positive note. The Nifty 50 gained 1.10%, while Nifty Midcap 150 and Nifty Small Cap 250 advanced 0.81% and 0.69% respectively.

The rally came despite global headwinds like US tariff uncertainty and sustained FII outflows. What fueled the resilience?
Strong domestic institutional buying cushioned the pressure.
A credit rating upgrade lifted investor sentiment — on August 14, S&P Global raised India’s sovereign rating from BBB- to BBB, highlighting policy stability and infrastructure-led growth.

With markets reopening after a long weekend, volatility could spike as traders digest both global and domestic cues.

In this newsletter, you’ll get the index technical outlook, key market-moving news, IPO updates, stocks on radar, and the big picture for the week ahead.

Index Technical Market Outlook 18 August

According to Equity Pandit Analysis, the major Indian indices are showing short-term negative trends with limited upside unless key resistance levels are crossed. Traders are advised to keep strict stoplosses and wait for closing confirmations before initiating fresh long positions.

SENSEX – Current View

Level: 80,598 | Trend: Negative

• Stoploss for short positions: 80,853
• Fresh long entry: Only if SENSEX closes above 80,853

Support Levels: 80,475 – 80,352 – 80,213
Resistance Levels: 80,728 – 80,853 – 80,979
Tentative Range: 79,936 – 81,258

👉 Investors should track heavyweight banking and IT stocks closely, as they may drive the next directional move.

NIFTY 50 – Current View

Level: 24,631 | Trend: Negative

• Stoploss for short positions: 24,673
• Fresh long entry: Only if NIFTY closes above 24,673

Support Levels: 24,594 – 24,557 – 24,518
Resistance Levels: 24,673 – 24,711 – 24,750
Tentative Range: 24,428 – 24,833

👉 The index is trading with caution; intraday traders should focus on breakout or breakdown levels for momentum opportunities.

BANK NIFTY – Current View

Level: 55,342 | Trend: Negative

• Stoploss for short positions: 55,703
• Fresh long entry: Only if BANK NIFTY closes above 55,703

Support Levels: 55,120 – 54,898 – 54,721
Resistance Levels: 55,703 – 55,855 – 56,008
Tentative Range: 54,500 – 56,000

👉 Volatility in banking stocks continues; traders should remain cautious and avoid aggressive long positions until confirmation above resistance.

Overall Outlook:
All three indices are still under pressure. Until resistances are decisively crossed, the broader market is expected to remain range-bound with a downside bias.

News & Stocks That Might Impact Markets

1. NCLT Approves INSCO’s Bid for Hindustan National Glass

The National Company Law Tribunal (NCLT) has cleared INSCO’s ₹2,250 crore resolution plan to acquire Hindustan National Glass & Industries Ltd (HNGL), India’s oldest and largest container glass manufacturer.

• HNGL was in financial distress with a debt of nearly ₹3,000 crore, and lenders had been seeking a buyer for years.
• The approved plan paves the way for the Madhvani Group (through INSCO) to gain a strong foothold in India’s packaging and container glass industry, which is growing due to rising demand in FMCG, liquor, and pharmaceuticals.
• The deal is also significant as it demonstrates growing investor appetite for India’s manufacturing revival story.

📊 Stocks That Might Be Impacted

• Hindustan National Glass (delisted, revival stage) – positive for bondholders and lenders like SBI, ICICI.
• Allied packaging and container companies → HNG’s revival may support demand visibility in companies like HSIL, Borosil Renewables.
• Cement & energy suppliers linked to glass industry could see indirect benefits.

2. Lemon Tree Hotels Expands Premium Presence in Delhi NCR

Lemon Tree Hotels, through its subsidiary Fleur Hotels Pvt Ltd, has won the licence to build a 5-star luxury Aurika Hotel at Nehru Place, New Delhi.

• The project will feature 500+ rooms, making it one of the largest luxury hotels in Delhi-NCR.
• This expansion comes at a time when the Indian hospitality sector is witnessing a post-pandemic boom, driven by domestic travel, weddings, and business events.
• Industry-wide RevPAR (Revenue per Available Room) is expected to grow 8–10% YoY in FY26, supported by strong demand and limited luxury hotel supply.

📊 Stocks That Might Be Impacted

• Lemon Tree Hotels (LEMONTREE) – direct beneficiary of premium positioning.
• Indian Hotels (IHCL), EIH, Chalet Hotels – sentiment booster for the hospitality sector.
• Travel & tourism enablers (IRCTC, Easy Trip Planners) may also see indirect demand uplift.

3. Defence Push: Mission Sudarshan Chakra

PM Narendra Modi unveiled Mission Sudarshan Chakra, an advanced air defence system inspired by Lord Krishna’s Sudarshan Chakra, during Independence Day celebrations.

• The system is expected to function like Israel’s Iron Dome, intercepting and neutralizing aerial threats.
• The project will be indigenously developed, aligning with “Atmanirbhar Bharat” and India’s defence modernization drive.
• India’s defence production reached a record ₹1.5 lakh crore in FY25, with exports crossing ₹21,000 crore.
• Defence will remain a strategic investment theme, as global tensions continue to highlight the need for stronger air defence.

📊 Stocks That Might Be Impacted

• PSUs: Bharat Electronics (BEL), Bharat Dynamics (BDL), Hindustan Aeronautics (HAL), Mazagon Dock, GRSE.
• Private players: Paras Defence, Data Patterns, Solar Industries, Astra Microwave.
• Ancillary suppliers in electronics and heavy engineering may also see opportunities.

4. Semiconductors, Critical Minerals, and GST Reforms

In his Independence Day speech, PM Modi announced bold reforms and roadmaps across multiple sectors:

• First Indigenous Chip by Year-End → A major milestone for India’s semiconductor mission, reducing reliance on imports and boosting domestic electronics manufacturing.
• Critical Minerals Push → Over 1,200 sites identified for exploration of rare earths and strategic minerals, crucial for EVs, electronics, and clean energy.
• Nuclear Expansion → India’s nuclear capacity will rise 10x in the next 20 years, reducing carbon footprint and enhancing energy security.
• Next-Gen GST Reforms → Expected by Diwali 2025, aimed at simplifying compliance for MSMEs and possibly rationalizing tax slabs.

📊 Stocks That Might Be Impacted

• Semiconductors: Vedanta, Tata Elxsi, Dixon Tech, Syrma SGS, Kaynes Tech.
• Mining & Minerals: NMDC, Hindustan Copper, Nalco, MOIL.
• Nuclear & EPC: L&T, BHEL, NTPC, NPCIL (not listed but suppliers benefit).
• FMCG & Auto (GST boost): HUL, Dabur, Marico, Maruti, Hero MotoCorp.

5. JK Cement’s ₹4,805 Crore Capacity Expansion

JK Cement has announced a greenfield expansion plan worth ₹4,805 crore, targeting capacity addition of 7 MTPA through new clinker and grinding units in Rajasthan and Punjab.

• This expansion will increase the company’s grey cement capacity to over 24 MTPA, cementing its position among India’s top players.
• The move comes as housing demand and infra projects continue to drive cement consumption.
• Analysts expect strong volume growth and margin expansion in the sector, given government focus on infra and housing schemes.

📊 Stocks That Might Be Impacted

• JK Cement (JKCEMENT) – direct beneficiary with strong capacity addition visibility.
• Peers: UltraTech Cement, Shree Cement, Dalmia Bharat – sector sentiment positive.
• Infra-linked stocks: L&T, IRB Infra, NBCC could also benefit indirectly.

6. Trump–Putin Meeting & Global Cues

The much-awaited meeting between Donald Trump and Vladimir Putin in Alaska concluded without a formal agreement but with positive forward momentum.

• Both leaders agreed to hold the next round of talks in Moscow, easing near-term geopolitical tensions.
• The US clarified it would not impose tariffs on Russian oil buyers “for now”, giving relief to energy markets.
• For India, this means potential stability in oil import costs and rupee movement.
• Analysts expect Indian markets to open on a positive note post-holiday, though Nifty’s resistance near 24,800 remains a hurdle.

📊 Stocks That Might Be Impacted

• Oil & Gas: ONGC, Reliance Industries, HPCL, BPCL (sensitive to crude price swings).
• Export-oriented sectors: IT (Infosys, TCS) and pharma (Sun Pharma, Dr. Reddy’s) could gain from global stability.
• Broader market may see sentiment-led rally, especially in large caps.

Together, these news updates highlight a mix of domestic triggers (defence, semiconductors, hotels, cement, packaging) and global cues (Trump–Putin talks, oil relief) that could set the tone for market action when trading resumes on Monday.

IPO Updates – Market Outlook 18 August

Indian IPO markets remain active post the Independence Day weekend, with several Mainboard and SME IPOs lined up for listing. Investors are keeping a close watch on Regaal Resources, Medistep Healthcare, and Classic Electrodes, as early GMP trends indicate strong listing interest.

Mainboard IPOs Update

Name	Open Date	Close Date	Listing Date	GMP / Listing Gain
Mangal Electrical IPO	20-Aug	22-Aug	25-Aug	₹–
Gem Aromatics IPO	19-Aug	21-Aug	26-Aug	₹41 (12.62%)
Vikram Solar IPO	19-Aug	21-Aug	26-Aug	₹60.5 (18.22%)
Patel Retail IPO	19-Aug	21-Aug	26-Aug	₹35 (13.73%)
Shreeji Shipping Global IPO	19-Aug	21-Aug	26-Aug	₹26 (10.32%)
Regaal Resources IPO	12-Aug	14-Aug	20-Aug	₹25 (24.51%)
BlueStone Jewellery IPO	11-Aug	13-Aug	19-Aug	₹2 (0.39%)
Knowledge Realty Trust REIT IPO	5-Aug	7-Aug	18-Aug	₹2 (2.00%)

SME IPOs Update

Name	Open Date	Close Date	Listing Date	GMP / Listing Gain
Current Infraprojects SME	18-Aug	20-Aug	21-Aug	₹–
Infraprime Logistics SME	19-Aug	21-Aug	22-Aug	₹–
Classic Electrodes SME	22-Aug	26-Aug	1-Sep	₹18 (20.69%)
LGT Business Connextions SME	19-Aug	21-Aug	26-Aug	₹–
Studio LSD SME	18-Aug	20-Aug	25-Aug	₹–
Mahendra Realtors SME	12-Aug	14-Aug	20-Aug	₹8 (9.41%)
Icodex Publishing Solutions SME	11-Aug	13-Aug	19-Aug	₹–
Medistep Healthcare SME	8-Aug	12-Aug	18-Aug	₹12 (27.91%)
Star Imaging SME	8-Aug	12-Aug	18-Aug	₹2 (1.41%)
ANB Metal Cast SME	8-Aug	12-Aug	18-Aug	₹–

Stocks in Radar – Market Outlook 18 August

Awfis Space Solutions (AWFIS IN)

Analyst: ICICI Securities Ltd

Research Report

ICICI_Securities_sees_59%_UPSIDE_in_AWFIS_Space_Solutions_GrowthDownload

Sector: Real Estate | Current Price (CMP): ₹559 | Target Price: ₹891 | Rating: BUY (Maintained)

Investment Thesis:
Awfis Space Solutions continues to show strong growth momentum in the co-working and flexible office space segment. With Q1FY26 revenue up 30% YoY and IGAAP EBITDA rising 60% YoY to ₹480mn, the company is expanding its operational capacity rapidly. Mature centre occupancy remains healthy at 84%, with over 140,000 operational seats and an additional 25,000 seats under fitout or signed LoIs. By March 2026, total operational seats are expected to surpass 170,000, reflecting the company’s robust expansion strategy.

Financial Snapshot (FY24–27E):

Parameter	FY24A	FY25A	FY26E	FY27E
Net Revenue (INR mn)	8,488	12,075	15,704	19,823
IGAAP EBITDA (INR mn)	680	1,676	2,213	2,975
IGAAP EBITDA Margin (%)	8.1	13.9	14.1	15.0
Net Profit (INR mn)	(176)	679	1,357	1,302
EPS (INR)	(2.8)	9.8	19.5	18.8

Growth Drivers:

• Operational Expansion: Plans to grow operational seats at a 34% CAGR through asset-light MA route and SL contracts.
• Revenue & EBITDA CAGRs: Estimated revenue CAGR of 28% and IGAAP EBITDA CAGR of 33% over FY25–27, with EBITDA margin rising to 15% by FY27.
• Financial Strength: Strong net cash position (₹2.3bn by Mar’27E) ensures adequate funding for capex without increasing debt.

Valuation & Outlook:
The company’s unique business model, strong RoCE (>50%), and projected EBITDA growth justify an EV/EBITDA multiple of 20x. With a revised target price of ₹891, investors can expect attractive upside from current levels.

Key Risks:

• Slower-than-expected office leasing growth across India.
• Intensifying pricing competition among co-working operators.

Note: This information is sourced from ICICI Securities Limited and is not a personal recommendation. It reflects the analyst report for informational purposes only.

Conclusion – Market Outlook 18 August

As the markets reopen after Independence Day and weekend holidays, traders should remain cautious but optimistic. Domestic institutional support, key policy announcements, and strong corporate earnings are likely to guide market sentiment. While global cues such as the Trump-Putin meeting and US tariff concerns persist, domestic triggers like GST reforms, defence initiatives, and infrastructure developments may provide selective opportunities.

Investors should focus on breakout levels in major indices, track IPO listings for potential short-term gains, and keep an eye on sectors highlighted in this newsletter for momentum plays. Prudent stock selection, risk management, and monitoring market triggers will remain key in navigating today’s trading session.

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