Market Outlook 26 August – Explosive Pre-Market Moves & Top Stocks to Watch

Intro: Market Outlook 26 August

Good morning and welcome to your Market Outlook 26 August edition.

The Indian stock market started the week on a positive note as benchmark indices closed higher on Monday, led by strength in IT and frontline stocks. The Nifty 50 ended at 24,981.75, up 111.65 points (0.45%), while the Sensex gained 360.18 points (0.44%) to settle at 81,667.03.

The broader market performance was mixed. The Nifty IT index surged sharply by 2.40% to 36,291.80, driving overall momentum, whereas Nifty Bank managed only a marginal gain of 0.026% at 55,163.70. On the other hand, the S&P BSE SmallCap index slipped slightly by 0.05% to 52,975.89, reflecting some profit-booking in the broader market.

With global cues steady and sectoral trends diverging, all eyes will be on whether the Nifty can sustain above the 25,000 mark in today’s session.

In this newsletter, you’ll find an in-depth technical view of key indices, corporate and sectoral news shaping the market, the latest updates on both Mainboard and SME IPOs, and insights into stocks to watch — helping you stay a step ahead with actionable market intelligence.

Index Technical View | Market Outlook 26 August

As per Equitypandit’s technical analysis, key indices are showing a cautious outlook heading into today’s session.

Sensex (81,636) is currently in a negative trend. Traders holding short positions may continue with a daily closing stop-loss at 82,201. Fresh long positions can be considered only if Sensex closes above 82,201.

• Support: 81,401 | 81,166 | 80,967
• Resistance: 81,835 | 82,034 | 82,269
• Tentative Range: 80,995 – 82,276

Nifty (24,968) also remains in a negative trend. Existing short positions can be maintained with a stop-loss at 25,150, while fresh long positions should be initiated only if Nifty closes above 25,150.

• Support: 24,901 | 24,834 | 24,774
• Resistance: 25,028 | 25,088 | 25,155
• Tentative Range: 24,769 – 25,165

Bank Nifty (55,139) continues in a negative trend. Traders holding short positions may continue with a stop-loss at 55,643, and fresh long positions are advisable only on a close above this level.

• Support: 55,023 | 54,907 | 54,766
• Resistance: 55,281 | 55,422 | 55,538
• Tentative Range: 54,653 – 55,624

Investors should monitor these key support and resistance levels closely as they provide critical guidance for intraday and short-term trades. The negative trends across Sensex, Nifty, and Bank Nifty indicate caution, while any sustained breakout above resistance levels could signal renewed buying interest.

Market Outlook 26 August | Key News and Stocks Likely to Be Impacted

In this Market Outlook 26 August, we highlight key news events and corporate actions that could influence stock movements today. Investors should watch these developments closely, as they may shape market sentiment and sector performance.

1. EPC Companies Set for Strong Revenue Growth in FY26

According to Crisil Ratings, diversified engineering, procurement, and construction (EPC) companies are projected to post 9–11% revenue growth in FY26, driven by higher government infrastructure spending and faster project execution. With nearly 75% of India’s capital expenditure allocated to infrastructure, opportunities in roads, metro projects, and renewable energy remain robust. Private sector participation is expected to rise to 11% in FY26 from 9% in FY25, while overseas expansion by top EPC firms will add new revenue streams.

Stocks Likely to Be Impacted (Market Outlook 26 August):

• Larsen & Toubro Ltd (NSE: LT) – Major EPC player.
• Sobha Ltd (NSE: SOBHA) – Urban infrastructure exposure.
• NBCC Ltd (NSE: NBCC) – Government-backed projects.

2. Molbio Diagnostics IPO Filed with SEBI

Molbio Diagnostics Limited has filed its Draft Red Herring Prospectus (DRHP) with SEBI, signaling an upcoming IPO. The issue includes a fresh ₹2,000 million raise and an Offer for Sale (OFS) of 12.56 million shares. The funds will support working capital, manufacturing expansion, and R&D for next-generation diagnostic tests. Molbio has demonstrated strong revenue and PAT growth in FY24, reflecting increasing demand for its diagnostic solutions.

Stocks Likely to Be Impacted (Market Outlook 26 August):

• Molbio Diagnostics Ltd (Upcoming IPO) – Primary beneficiary.
• Dr. Lal PathLabs Ltd (NSE: LALPATHLAB) – Sectoral peer.
• Metropolis Healthcare Ltd (NSE: METROPOLIS) – Investor attention on diagnostics may increase.

3. Julien Agro Infratech Announces 1:1 Bonus Share Issue

Julien Agro Infratech Limited announced a 1:1 bonus issue, granting one additional share for every share held. The record date is October 6, 2025, and the AGM approval is scheduled for September 20, 2025. This corporate action aims to reward shareholders and enhance stock liquidity, which is an important highlight in the Market Outlook 26 August.

Stocks Likely to Be Impacted:

• Julien Agro Infratech Ltd (BSE: 536073) – Direct impact.
• Tata Chemicals Ltd (NSE: TATACHEM) – Agro sector peers may see sentiment shifts.
• Coromandel International Ltd (NSE: COROMANDEL) – Agro-related investor interest.

4. Block Deal Mishap Spurs SEBI Proposals

A trading error in Clean Science & Technology’s block deal revealed weaknesses in India’s large-share transaction system. Duplicate orders executed a 24% stake inadvertently. SEBI now proposes raising the minimum block deal size to ₹250 million and increasing the discount limit to 3% to reduce operational risks. This is a key development in today’s Market Outlook 26 August, impacting investor confidence in large-cap deals.

Stocks Likely to Be Impacted:

• Clean Science & Technology Ltd (NSE: CLEAN) – Directly affected.
• Reliance Industries Ltd (NSE: RELIANCE) – Large-cap block deals under scrutiny.
• Asian Paints Ltd (NSE: ASIANPAINT) – Investors may rethink block deal strategies.

5. NBCC Secures ₹3,700 Crore Rajasthan Mega Project

NBCC Ltd will lead a 95-acre mixed-use development in Rajasthan, including convention centers, IT towers, luxury hotels, and residential infrastructure. Valued at ₹3,700 crore, the project reinforces NBCC’s position as a key government infrastructure player and strengthens its project pipeline. This is a significant highlight in the Market Outlook 26 August for infrastructure stocks.

Stocks Likely to Be Impacted:

• NBCC Ltd (NSE: NBCC) – Direct beneficiary.
• Larsen & Toubro Ltd (NSE: LT) – Peer companies may see positive sector sentiment.
• HCC Ltd (NSE: HCC) – EPC firms may attract more investor interest.

6. Government Introduces Minimum Import Price for Virgin Multi-Layer Paper

The government imposed a Minimum Import Price (MIP) on virgin multi-layer paper boards until March 31, 2026, to protect domestic producers from cheaper imports. Shares of TNPL jumped 17% intraday, with gains for JK Paper, West Coast Paper Mills, and other industry players expected due to improved margins and market share. This measure is an important point in the Market Outlook 26 August for paper and packaging stocks.

Stocks Likely to Be Impacted:

• Tamilnadu Newsprint & Papers Ltd (NSE: TNPL) – Major beneficiary.
• JK Paper Ltd (NSE: JKPAPER) – Protected from cheap imports.
• West Coast Paper Mills Ltd (NSE: WCP) – Likely margin improvement.

Market Outlook 26 August | IPO Update

Mainboard IPOs

IPO Name	Open Price (₹)	Close Price (₹)	Listing Date	GMP / Listing Gain
Amanta Healthcare IPO	20	20	4-Sep	₹20 (15.87%)
Anlon Healthcare IPO	5	5	1-Sep	₹5 (5.49%)
Vikran Engineering IPO	12	21	3-Sep	₹19 (19.59%)
Mangal Electrical IPO	26	26	28-Aug	₹21 (3.74%)
Patel Retail IPO	58	58	26-Aug	₹52.5 (20.59%)
Shreeji Shipping Global IPO	58	58	26-Aug	₹34 (13.49%)
Vikram Solar IPO	45	45	26-Aug	₹38 (11.45%)
Gem Aromatics IPO	46	46	26-Aug	₹28 (8.62%)

SME IPOs

IPO Name	Open Price (₹)	Close Price (₹)	Listing Date	GMP / Listing Gain
Rachit Prints	149	149	4-Sep	₹– (0.00%)
Snehaa Organics	122	122	5-Sep	₹23 (18.85%)
Sugs Lloyd	123	123	5-Sep	₹– (0.00%)
Abril Paper Tech	61	61	5-Sep	₹– (0.00%)
Oval Projects Engineering	85	85	4-Sep	₹8 (9.41%)
Current Infraprojects	80	80	1-Sep	₹43 (53.75%)
Sattva Engineering Construction	75	75	1-Sep	₹17 (22.67%)
NIS Management	111	111	2-Sep	₹7 (6.31%)
Globtier Infotech	72	72	2-Sep	₹8 (11.11%)
Anondita Medicare	145	145	1-Sep	₹70 (48.28%)
Shivashrit Foods	142	142	1-Sep	₹5 (3.52%)
Classic Electrodes	87	87	1-Sep	₹20 (22.99%)
ARC Insulation	125	125	29-Aug	₹5 (4.00%)
LGT Business Connextions	107	107	26-Aug	₹– (0.00%)

Key IPO Highlights – Market Outlook 26 August

• Top Mainboard Gainers:
  • Amanta Healthcare IPO showed a strong listing performance with a GMP of ₹20 (15.87%), reflecting healthy investor demand.
  • Vikran Engineering IPO impressed investors with a GMP of ₹19 (19.59%), indicating positive market sentiment.
  • Patel Retail IPO and Vikram Solar IPO also delivered solid listing gains of 20.59% and 11.45% respectively.
• SME IPO Stars:
  • Current Infraprojects topped the SME segment with a remarkable GMP of ₹43 (53.75%), making it one of the most successful SME listings recently.
  • Anondita Medicare followed closely with a GMP of ₹70 (48.28%), showing strong investor appetite.
  • Classic Electrodes and Snehaa Organics also posted healthy listing gains of 22.99% and 18.85% respectively.
• Notable Observations:
  • Several IPOs like LGT Business Connextions, Rachit Prints, and Sugs Lloyd opened and closed at par with no GMP, indicating modest listing activity.
  • Overall, both Mainboard and SME IPOs demonstrated strong market interest, signaling positive sentiment for upcoming IPOs.

Stocks in Radar – Market Outlook 26 August

Devyani International Ltd. (DEVYANI)

• CMP: ₹170
• Target Price: ₹193
• Potential Upside: 13.3%
• Recommendation: ACCUMULATE by Deven Choksey
• Sector: Consumer
• Market Cap: ₹2,05,066 Mn

Result Highlights – Q1FY26:

• Revenue: ₹13,570 Mn (+11.1% YoY / +11.9% QoQ), driven by strong growth in KFC (+10.5% YoY), Costa (+14.1% YoY), and food court business in India. International operations grew 11.2% YoY.
• EBITDA: ₹2,049 Mn (-8.3% YoY / +2% QoQ), EBITDA margin contracted to 15.1% due to higher marketing spends, input cost inflation, and lower ADS.
• Net Profit: ₹29 Mn (-92.4% YoY), impacted by higher depreciation and interest expenses.

Operational Highlights:

• Added 103 net stores in India and 3 overseas, total network: 2,145 stores including Sky Gate acquisition.
• KFC brand contribution expected to improve through expansion in Tier 2/3 cities and operational efficiencies.
• Pizza Hut brand faces competitive pressure; recovery expected gradually via pricing recalibration and value offerings.
• Consolidated brand contribution declined from 15.3% to 13.1% YoY.

Outlook & Strategy:

• Expansion: 110–120 new KFC stores planned in FY26, selective Pizza Hut growth.
• Sky Gate: Integration expected to enhance medium-term profitability.
• Valuation: Revised FY26E/FY27E EBITDA estimates to factor in gradual consumer demand recovery and higher input costs; target price INR 193 at 22.5x Jun’27 EBITDA.

Stock Insights:

• Revenue CAGR FY25–FY27E: 13.7%
• EBITDA CAGR FY25–FY27E: 16.5%
• 52-Week H/L: ₹223/134

Key Takeaway: Despite weak Q1 performance, gradual recovery in brand contribution and strategic expansion in KFC and owned brands make Devyani an ACCUMULATE candidate for investors seeking consumer sector exposure.

Conclusion – Market Outlook 26 August

As the Indian market prepares to open on 26 August, investors can expect a cautiously optimistic start with selective buying opportunities. Key drivers include recent IPO movements, sector-specific developments, and global market cues. Stocks with strong fundamentals, visible growth catalysts, and medium-term expansion potential, such as Devyani International, may see interest, while IPO trends could offer short-term momentum.

In this pre-market scenario, Market Outlook 26 August highlights a balanced approach: seize early opportunities in high-performing equities and IPOs, but remain mindful of sector-specific risks and valuations.

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