Market Outlook 28 August – 5 Powerful Insights, Key Stocks & IPO Updates

Market Outlook 28 August

Good morning and welcome to your Market Outlook 28 August edition.

Ahead of the mid-week holiday for Ganesh Chaturthi, the Indian stock market ended Tuesday’s session with sharp losses across key indices. The Nifty 50 slipped 255.70 points (-1.02%) to close at 24,712.05, while the Sensex dropped 849.37 points (-1.04%) to settle at 80,786.54.

Sector-wise, pressure was visible in banking and IT stocks. The Nifty Bank fell 688.85 points (-1.25%) to 54,450.45, and the Nifty IT declined 216.85 points (-0.60%) to 36,063.20. Broader markets faced heavier selling, with the S&P BSE SmallCap tumbling 891.75 points (-1.68%) to 52,097.59.

In this Market Outlook 28 August newsletter, we bring you the technical view on indices, key news & stocks to watch, the latest IPO updates, and stocks on our radar for today’s trade.

Index Technical View – Market Outlook 28 August

According to EquityPandit research, the broader trend remains negative with selling pressure dominating across key indices. Here’s a detailed breakdown:

Sensex (80,787)

The Sensex is showing continued weakness after heavy selling in the previous session.

• Trend: Negative – shorts can be held with a stop-loss at 81,724.
• Fresh Longs: Possible only if Sensex closes above 81,724, which would indicate strength returning.
• Support Levels: 80,498 – 80,210 – 79,734. These are critical zones where buying interest could emerge.
• Resistance Levels: 81,263 – 81,739 – 82,027. A breakout above these levels may trigger upside momentum.
• Tentative Range: 80,123 – 81,449 for the day.

According to EquityPandit research, until the index breaks above resistance, traders should stay cautious and maintain defensive positions.

Nifty 50 (24,712)

Nifty continues in a corrective phase with bearish sentiment dominating.

• Trend: Negative – shorts can be held with a stop-loss at 25,006.
• Fresh Longs: A close above 25,006 would signal strength and allow fresh buying.
• Support Levels: 24,628 – 24,544 – 24,398. These levels will decide whether Nifty can hold ground or extend losses.
• Resistance Levels: 24,858 – 25,004 – 25,088. Strong hurdles that need to be crossed for any recovery.
• Tentative Range: 24,508 – 24,915 for the day.

EquityPandit research suggests that Nifty may remain under pressure unless it sustains above the 25,000 mark.

Bank Nifty (54,450)

Banking stocks have led the correction, and Bank Nifty remains the weakest among major indices.

• Trend: Negative – shorts can be held with a stop-loss at 55,230.
• Fresh Longs: Will be viable only if the index closes above 55,230.
• Support Levels: 54,208 – 53,966 – 53,535. A break below these levels could accelerate the fall.
• Resistance Levels: 54,881 – 55,311 – 55,554. Bulls need a close above these zones to regain control.
• Tentative Range: 53,946 – 54,954 for the day.

As per EquityPandit research, Bank Nifty remains in a vulnerable position, and traders should prefer shorts unless strong buying emerges above resistance.

Overall, the market outlook 28 August suggests caution. Unless key resistance levels are broken, traders are advised to hold defensive positions or continue with existing shorts.

News & Stocks – Market Outlook 28 August

The trading session after the Ganesh Chaturthi break could open with a cautious tone as multiple domestic and global developments are set to influence investor sentiment.

US Tariffs Put Pressure on Indian Exports

The Indian export sector faces a major setback after US President Donald Trump imposed an additional 25% tariff on Indian goods, effectively raising levies to 50% from August 27, 2025. According to trade estimates, this move could impact nearly ₹45,000 crore worth of exports, particularly in labour-intensive sectors like leather, marine products, and engineering goods.

West Bengal is among the worst affected states. Its marine exports, worth nearly ₹5,000–6,000 crore annually, now face stiff competition and reduced demand from the US. This may hit listed companies such as Avanti Feeds, Apex Frozen Foods, and Zeal Aqua, which have a sizeable exposure to seafood exports. The leather industry, concentrated in Bantala and employing around five lakh workers, is also under stress as the US accounts for about 20% of India’s leather exports. Though most Indian leather firms are unlisted, the indirect impact could be felt by companies like Superhouse Ltd and Mirza International, which have global export operations.

Engineering exports, which contribute nearly $1 billion from Bengal alone, may also face headwinds. Larger firms like Bharat Forge and AIA Engineering could see investor caution despite their diversified global presence. Overall, export-driven counters are likely to remain under pressure in the near term.

Edelweiss Financial Services Sees Big Block Deal

Shares of Edelweiss Financial Services Ltd surged nearly 7% to ₹107.85 on Tuesday, despite a weak broader market, after a significant ₹64 crore block deal. Abakkus Asset Manager, led by veteran fund manager Sunil Singhania, purchased 64.3 lakh shares at ₹100 each. The sellers were Edelweiss Employees Welfare Trust and Edelweiss Employees Incentives and Welfare Trust.

This transaction has boosted investor confidence in the counter, with many interpreting the move as a strong vote of faith by Abakkus. Edelweiss has gained around 14% in the last six months, though the stock continues to remain volatile. On the financial front, the company reported a 13.4% YoY rise in consolidated net profit to ₹67 crore in Q1FY26, though revenues dipped 2.4% YoY to ₹2,281 crore.

Given Abakkus’ strong track record of identifying undervalued plays, market participants will be closely watching Edelweiss’s next moves in its lending, wealth management, and asset management businesses.

Signpost India Bags Metro Advertising Contract

Signpost India Ltd has secured a 9-year exclusive contract with Bangalore Metro Rail Corporation (BMRCL) for advertising rights across 67 Namma Metro stations. The deal covers over 100,000 sq. ft. of premium media space and is expected to generate revenues of up to ₹700 crore over the contract period.

This is a significant win for Signpost as it strengthens the company’s presence in transit media advertising. The Bangalore Metro is one of India’s fastest-growing metro networks, and this long-term contract aligns with Signpost’s “Signs of Tomorrow” strategy, which focuses on digital-first, high-engagement advertising platforms.

For investors, this deal is a potential game-changer. While Signpost is an unlisted entity, the move reflects strong growth prospects in the out-of-home advertising space. Peer-listed companies such as Laqshya Media (if listed), S Chand-owned OOH businesses, or Adlabs Entertainment may also benefit from growing investor attention on this segment.

Nazara Technologies Expands Footprint in UK

Nazara Technologies, a key player in the gaming and sports media space, has approved loans totalling ₹17.73 crore to its wholly-owned UK subsidiary. The funding was distributed across three arms: Kiddopia Inc (₹8.73 crore), Sportskeeda Inc (₹5 crore), and Nazara Mauritius (₹4 crore).

The objective is to strengthen Nazara’s UK presence, expand its gaming ecosystem, and provide working capital for its fast-growing subsidiaries. This move demonstrates the company’s ambition to scale globally, particularly in the casual gaming and sports engagement markets, which are expected to grow rapidly in Europe.

Nazara’s aggressive expansion strategy, coupled with its diversified portfolio across e-sports, gamified learning, and sports media, positions it as a strong growth stock. The company has also been an investor favourite in the smallcap tech space, and this latest overseas push is expected to support its long-term valuation.

Government Pushes Textile Exports Amid Tariffs

Amid rising concerns over the 50% US tariffs, the Government of India has announced a textile export push across 40 countries, including Japan, South Korea, the UK, and EU nations. The strategy involves export promotion councils and Indian missions abroad working together to position India as a sustainable and reliable textile supplier.

This initiative is crucial, as the textile sector contributes significantly to India’s exports and employment. Listed companies such as Arvind Ltd, Welspun India, Vardhman Textiles, and KPR Mill could benefit from new market opportunities in Europe and Asia, partially offsetting the loss of US business.

The success of this strategy will depend on how quickly Indian exporters adapt to new markets, but the move signals the government’s proactive stance to safeguard one of India’s largest employment-generating sectors.

Oil Marketing Companies Benefit from Strong Margins

India’s oil marketing companies (OMCs) are emerging as clear winners in FY26 thanks to high marketing margins. Margins have averaged ₹11.2 per litre on petrol and ₹8.1 per litre on diesel, as crude oil prices have stayed comfortably below $70 per barrel.

This environment has been highly profitable for players like BPCL, HPCL, and IOCL, which are now attracting bullish calls from global brokerages. HSBC and Jefferies recently upgraded the sector, with Jefferies favouring BPCL for its ability to withstand policy risks. While HPCL may face near-term earnings pressure due to new project commissioning, the overall outlook for OMCs remains positive.

The strong margin trend is likely to reflect in upcoming quarterly earnings, making OMCs one of the more resilient plays in an otherwise uncertain market backdrop.

Stocks to Watch – Summary Table

Stock / Sector	News Trigger	Potential Impact
Avanti Feeds, Apex Frozen Foods, Zeal Aqua	US imposes 50% tariff on Indian exports; marine exports hit (₹5,000–6,000 crore from Bengal affected).	Negative – Export-driven revenue under pressure.
Superhouse Ltd, Mirza International	Leather exports face 20% hit due to US tariffs.	Negative – May see margin and demand pressure.
Bharat Forge, AIA Engineering	Engineering exports (worth $1B from Bengal) to face higher costs.	Mildly Negative – Could face short-term investor caution.
Edelweiss Financial Services	₹64 crore block deal; Abakkus Asset Management buys 64.3 lakh shares at ₹100.	Positive – Institutional buying signals confidence.
Signpost India (Unlisted)	Wins ₹700 crore BMRCL metro ad contract for 9 years.	Positive – Strong growth outlook (may impact sentiment in listed OOH peers).
Nazara Technologies	₹17.73 crore loan to UK subsidiary for global expansion.	Positive – Strengthens overseas presence and growth story.
Arvind Ltd, Welspun India, Vardhman Textiles, KPR Mill	Govt pushes textile exports to 40 countries amid US tariffs.	Positive – Potential new market opportunities.
BPCL, HPCL, IOCL	High marketing margins: ₹11.2/litre petrol, ₹8.1/litre diesel; crude < $70/barrel.	Positive – Strong earnings momentum in near term.

IPO Updates – Market Outlook 28 August

Mainboard IPOs

IPO Name	Open Date	Close Date	Listing Date	GMP / Listing Gain
Amanta Healthcare IPO	1-Sep	3-Sep	9-Sep	₹22 (≈17.5% gain)
Vikran Engineering IPO	26-Aug	29-Aug	3-Sep	₹13 (≈13.4% gain)
Anlon Healthcare IPO	26-Aug	29-Aug	3-Sep	₹5 (≈5.5% gain)
Mangal Electrical IPO	20-Aug	22-Aug	28-Aug	Listing Today (GMP NA)

SME IPOs

IPO Name	Open Date	Close Date	Listing Date	GMP / Listing Gain
Sattva Engg Construction IPO	26-Aug	29-Aug	3-Sep	₹19 (≈25.3% gain)
Current Infraprojects IPO	26-Aug	29-Aug	3-Sep	₹45 (≈56.2% gain)
NIS Management IPO	25-Aug	28-Aug	2-Sep	₹7 (≈6.3% gain)
Globtier Infotech IPO	25-Aug	28-Aug	2-Sep	₹1 (≈1.4% gain)
Anondita Medicare IPO	22-Aug	26-Aug	1-Sep	₹80 (≈55.2% gain)
Shivashrit Foods IPO	22-Aug	26-Aug	1-Sep	₹1 (≈0.7% gain)
Classic Electrodes IPO	22-Aug	26-Aug	1-Sep	₹17 (≈19.5% gain)
ARC Insulation IPO	21-Aug	25-Aug	29-Aug	₹25 (≈20% gain)

Editor’s Take

The IPO market is buzzing with action. Among mainboard offerings, Vikran Engineering is in focus as it closes on 29 August with a healthy GMP of around 13%. On the SME side, Anondita Medicare (55% GMP), Current Infraprojects (56% GMP), and Classic Electrodes (20% GMP) are the clear standouts, showing strong subscription momentum and high listing gain potential. Investors should keep a close watch on Mangal Electrical IPO, which lists today, to gauge broader sentiment.

Stocks in Radar – Market Outlook 27 August

Petronet LNG (CMP: ₹274 | Target: ₹410 | Upside: +50%)

Research by Motilal Oswal – Abhishek Nigam & Rishabh Daga

Business Overview

Petronet LNG is India’s largest liquefied natural gas (LNG) regasification company, operating key terminals at Dahej and Kochi. The company plays a vital role in India’s natural gas supply chain, meeting ~69% of LNG imports in FY25. With a 5 MMTPA expansion at Dahej scheduled by Dec’25, Petronet LNG is well-positioned to capture the next phase of India’s rising LNG demand.

Financials

• FY25 Sales: ₹509.8B | FY27E Sales: ₹521.7B
• FY25 PAT: ₹39.3B | FY27E PAT: ₹46.4B
• EPS Growth: 18.7% (FY27E)
• RoE: 21.6% (FY25) → 20% (FY27E)
• Dividend Yield: ~4.3%

Valuation looks attractive at just 8.9x FY27E P/E, with a healthy balance sheet (net cash position).

Drivers

• Capacity Expansion: Dahej terminal expansion to boost volumes and market share.
• Rising LNG Imports: India’s LNG imports expected to grow at 6% CAGR over FY25-30, driven by city gas distribution (CNG growth 7–12% YoY).
• Cost Advantage & Infra Moat: Petronet’s low-cost operations and established infra help it defend market share against new entrants.
• Global LNG Supply Surge: Lower LNG prices globally can support affordability and higher demand in India.

Outlook

Motilal Oswal maintains a BUY rating with a target price of ₹410, implying a strong +50% upside from current levels. With expansion-led growth, attractive dividend yield, and robust demand outlook, Petronet LNG stands out as a compelling long-term play in India’s energy transition.

Conclusion – Market Outlook 28 August

As we wrap up the Market Outlook 28 August, it’s clear that the market remains at an interesting juncture. Global cues are still mixed, with crude oil volatility and US bond yields keeping investors cautious, while domestic fundamentals remain supportive. The resilience of IT, energy, and FMCG stocks continues to provide stability, but selective profit booking in midcaps and banking counters cannot be ignored.

For traders, the Market Outlook 28 August suggests staying watchful of global market trends and currency fluctuations, as these will directly influence short-term moves. On the other hand, long-term investors should continue focusing on quality sectors like infrastructure, renewables, and consumption, where structural growth drivers remain intact.

IPO activity is adding fresh excitement, with strong subscription trends in some SME issues and notable interest in mainboard IPOs. The Market Outlook 28 August highlights that listing gains may remain stock-specific, but investor appetite shows no signs of cooling.

In short, the Market Outlook 28 August indicates a cautiously optimistic setup for the coming sessions. EquityPandit research suggests keeping a balanced approach—traders should maintain strict stop-losses, while investors can use dips to accumulate fundamentally strong names.

Disclaimer: This newsletter does not contain our own research or investment advice. We are not SEBI-registered advisors. All market views, stock opinions, and IPO updates shared here are sourced from reputed experts and publicly available information. Readers are advised to consult a certified financial advisor before making any investment decisions.

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