Market Outlook 5th August: Nifty, Sensex Trend, IPO Updates & Stocks to Watch

Market Outlook 5th August

Good morning and welcome to your Market Outlook 5th August edition.

The domestic equity market kicked off the week on a positive note, posting a strong rebound on Monday after the weekend break. The Nifty 50 surged 165 points to close at 24,730.35 (+0.67%), while the Sensex gained 447.15 points, ending at 81,047.06 (+0.55%).

Sector-wise, IT stocks led the rally, with the Nifty IT index jumping 1.59% to 35,199.20, supported by renewed buying in technology counters. Small-cap stocks also showed strength, as the S&P BSE SmallCap climbed 0.82% to 53,004.88, indicating broader market participation. Meanwhile, Nifty Bank remained largely flat, inching up just 0.04% to 55,641.55.

This positive momentum sets a cautiously optimistic tone for 5th August, with traders watching whether the rally can sustain amid global cues and sector-specific movements.

Index Technical View | Market Outlook 5th August

According to Equity Pandit’s analysis, the major Indian indices are still trading in a negative trend, and traders should remain cautious as the market attempts to sustain its recent rebound. For Market Outlook 5th August, the focus remains on key support and resistance levels that could trigger the next directional move.

SENSEX (81,019):
The Sensex is maintaining a negative bias. Equity Pandit suggests that traders holding short positions can continue with a daily closing stop-loss at 81,493, while fresh long positions are only recommended if the index closes above this crucial level.

• Support Levels: 80,648 – 80,278 – 80,056
• Resistance Levels: 81,241 – 81,463 – 81,834
• Tentative Range: 80,325 – 81,711

NIFTY (24,723):
The Nifty 50 is also under a negative setup. Equity Pandit advises maintaining short positions with a stop-loss at 24,856 and initiating new long positions only if a close above 24,856 is achieved.

• Support Levels: 24,606 – 24,489 – 24,424
• Resistance Levels: 24,788 – 24,853 – 24,970
• Tentative Range: 24,512 – 24,932

BANK NIFTY (55,619):
Bank Nifty remains weak in today’s Market Outlook 5th August. Equity Pandit highlights that short positions are safe until the index gives a daily close above 56,106, which could trigger a fresh bullish trend.

• Support Levels: 55,454 – 55,288 – 55,138
• Resistance Levels: 55,769 – 55,918 – 56,084
• Tentative Range: 55,101 – 56,137

Overall, the Market Outlook for 5th August suggests that indices are in a sell-on-rise mode, and traders should closely monitor immediate resistance levels for signs of reversal. A breakout above these levels could lead to renewed bullish momentum, while failure to hold supports may invite further profit booking.

News and Stocks That Might Be Impacted | Market Outlook 5th August

The Market Outlook for 5th August suggests that Indian equities may remain cautious and volatile, as a combination of domestic policy moves, global trade tensions, and corporate updates guide investor sentiment. Here’s a detailed look at the key news and their potential market impact:

1. RBI Monetary Policy – Expected 25 bps Rate Cut

The Reserve Bank of India (RBI) is holding its Monetary Policy Committee (MPC) meeting from August 4–6, and the market expects a 0.25% (25 basis points) cut in the repo rate. This step is likely aimed at supporting the Indian economy, which is currently dealing with high trade uncertainties and slowing global growth.

Impact on Markets:

• A rate cut makes borrowing cheaper, which can boost credit demand and economic activity.
• Banking and NBFC stocks could see positive momentum, especially in sectors like real estate and auto, which benefit from lower interest rates.
• However, investors will watch RBI’s commentary on inflation and future rate moves, which could determine whether the market sustains this optimism.

2. US Tariffs on Indian Exports – Pressure on Export Sectors

The United States has announced a 25% tariff on Indian exports, effective August 7, 2025. This has already shaken market confidence, especially in export-heavy sectors like IT, Pharma, and Auto. The previous week saw sharp declines in Sensex and Nifty, reflecting the fear of lower export earnings.

Diplomatic talks are underway, and a US delegation will visit New Delhi soon. India is firm on protecting agriculture and dairy sectors, which remain key sticking points in trade negotiations.

Impact on Markets:

• IT companies like Infosys and TCS, pharma majors like Sun Pharma and Dr. Reddy’s, and auto exporters like Tata Motors may face pressure.
• Positive news on trade talks could quickly lift sentiment, but until then, markets may stay range-bound and cautious.

3. India’s Climate Finance Taxonomy – Boost for Green Investments

India is set to launch its final Climate Finance Taxonomy in August 2025, a rulebook that will define which projects and companies qualify as climate-friendly. This system aims to attract capital for clean energy and sustainable projects and curb greenwashing, where companies exaggerate their environmental credentials.

The taxonomy will:

• Focus on clean energy, mobility, agriculture, steel, and cement.
• Guide investors on where to deploy funds for maximum climate impact.
• Align with India’s Net Zero 2070 and Viksit Bharat 2047 goals.

Impact on Markets:

• Renewable energy and ESG-focused companies like Adani Green, NTPC, Tata Power, and Vikram Solar may see long-term investor interest.
• This also improves India’s credibility for attracting foreign climate finance.

4. IT Sector Q1 FY26 Earnings Preview – Mixed Performance Expected

Indian IT companies are about to report Q1 FY26 results, and the outlook is mixed:

• Tier-1 IT companies like Infosys and TCS may show muted growth.
• Mid-tier firms like Coforge and Persistent Systems may outperform due to strong cost-optimization and AI-driven projects.
• Cross-currency tailwinds (+50–300 bps) could boost dollar revenue growth, but global uncertainty may limit discretionary spending.

Impact on Markets:

• IT index, down 10% YTD but up ~3% in the last month, may remain stock-specific.
• Generative AI adoption and cost-saving deals continue to support mid-tier IT players more than large-caps.

5. Key Corporate Developments to Watch

AU Small Finance Bank & SBI Life Partnership

• AU Bank will distribute SBI Life Insurance policies via 2,505+ branches across 21 states and 4 UTs, supporting the “Insurance for All by 2047” mission.
• Impact: Boosts cross-selling opportunities for AU Bank and expands SBI Life’s rural reach, supporting long-term premium growth.

Vikram Solar Secures 250 MW Module Order

• Vikram Solar has bagged a 250 MW solar module order from Bondada Group for a Maharashtra project, with deliveries starting in FY26.
• Impact: Strengthens Vikram Solar’s market position and aligns with India’s renewable energy expansion.

Tea Production Decline

• India’s tea production fell 9% YoY in June 2025 due to bad weather and pest attacks, with the steepest decline in North India (Assam & West Bengal).
• Impact: Companies like Tata Consumer and McLeod Russel could face supply pressure and price volatility.

Anil Ambani Loan Fraud Probe

• The ED is probing a ₹17,000 crore corporate loan fraud linked to Anil Ambani Group companies, calling it one of the largest ongoing investigations.
• Impact: Negative sentiment for group-linked companies and renewed scrutiny of banks with exposure to such loans.

6. FII Outflows Continue – Domestic Investors Provide Support

• Foreign Institutional Investors (FIIs) are still pulling out funds amid trade tensions and global uncertainty.
• Domestic Institutional Investors (DIIs) are cushioning the market, but any further global shocks could weigh heavily on indices.

Overall Market Outlook 5th August:

• Expect sector-specific volatility, with IT, Pharma, and Auto under pressure, while banking, insurance, and renewable stocks could see selective buying.
• Key triggers this week: RBI rate decision, U.S. trade developments, Q1 IT earnings, and auto sales data.

IPO Update | Market Outlook 5th August

IPO activity remains strong, with several mainboard and SME IPOs either open for subscription or lined up for listing. Grey Market Premium (GMP) trends indicate where investors are expecting listing gains.

Mainboard IPOs to Watch

IPO Name	Open	Close	Listing	GMP / Listing Gain
All Time Plastics IPO	7 Aug	11 Aug	14 Aug	₹0 (0%) – Flat
JSW Cement IPO	7 Aug	11 Aug	14 Aug	₹19 (~12.93%) – Moderate
Knowledge Realty Trust REIT IPO	5 Aug	7 Aug	18 Aug	₹0 (0%) – Neutral
Highway Infrastructure IPO	5 Aug	7 Aug	12 Aug	₹40 (~57.14%) – Strong
M&B Engineering IPO (Closed)	30 Jul	1 Aug	6 Aug	₹44 (~11.43%) – Moderate
NSDL IPO (Closed)	30 Jul	1 Aug	6 Aug	₹126 (~15.75%) – Positive
Sri Lotus Developers IPO (Closed)	30 Jul	1 Aug	6 Aug	₹39 (~26%) – Healthy
Aditya Infotech IPO (Allotted)	29 Jul	31 Jul	5 Aug	₹295 (~43.7%) – Strong
Laxmi India Finance IPO (Allotted)	29 Jul	31 Jul	5 Aug	₹1 (~0.63%) – Flat

SME IPOs Gaining Investor Traction

IPO Name	Open	Close	Listing	GMP / Listing Gain
Current Infraprojects (NSE SME)	Open	Ongoing	—	₹0 (0%) – Neutral
Infraprime Logistics (BSE SME)	Open	Ongoing	—	₹0 (0%) – Neutral
ANB Metal Cast	8 Aug	12 Aug	18 Aug	₹0 (0%) – Neutral
Connplex Cinemas	7 Aug	11 Aug	14 Aug	N/A
Sawaliya Foods Products	7 Aug	11 Aug	14 Aug	₹0 (0%) – Weak
Essex Marine	4 Aug	6 Aug	11 Aug	₹11 (~20.37%) – Moderate
Bhadora Industries	4 Aug	6 Aug	11 Aug	₹1 (~0.97%) – Flat
BLT Logistics	4 Aug	6 Aug	11 Aug	₹15 (~20%) – Positive
Aaradhya Disposal	4 Aug	6 Aug	11 Aug	₹0 (0%) – Neutral
Parth Electricals	4 Aug	6 Aug	11 Aug	₹22 (~12.94%) – Mild Upside
Jyoti Global Plast	4 Aug	6 Aug	11 Aug	₹13 (~19.7%) – Healthy
Flysbs Aviation (Closes 5 Aug)	1 Aug	5 Aug	8 Aug	₹195 (~86.67%) – Strong

Market Outlook 5th August:

• High excitement around Highway Infrastructure, Aditya Infotech, and Flysbs Aviation IPOs with strong GMPs.
• Flat or muted GMPs in other IPOs indicate stock-specific action.
• Investors should track subscription levels and GMP trends closely for potential listing gains.

Stocks in Radar | Market Outlook 5th August

Among the stocks likely to be in focus, Schloss Bangalore Ltd (The Leela) has caught investor attention due to its strong growth potential in the luxury hospitality segment.

Schloss Bangalore Ltd (THELEELA)

• CMP: ₹414
• Recommendation: Buy
• Target Price: ₹493
• Expected Upside: 20% in 8 months
• Sector: Hotels & Resorts
• Recommended By: Mastertrust Broking & Investments
• Research: Click Here to view

About the Company

Schloss Bangalore Ltd owns and operates The Leela Palaces, Hotels & Resorts, one of India’s most prestigious luxury hospitality brands. Backed by Brookfield, the company manages 13 operational hotels with 3,553 keys and is planning to expand to 21 properties with 4,510 keys by FY28.

Key highlights:

• Successfully raised ₹3,500 crore via IPO in 2025, used for growth and debt reduction.
• Developing a marquee mixed-use project in Mumbai’s BKC, further enhancing brand presence.
• Strong brand equity and premium positioning, with RevPAR 1.4× the industry average.

Investment Rationale

• Growth Trajectory: Expanding from 13 to 21 hotels by FY28, tapping rising demand for premium hospitality.
• Operational Efficiency: Occupancy >70%, EBITDA margin ~46%, well above industry standards.
• Financial Strength: IPO proceeds enabled ₹2,300 crore debt repayment, reducing finance costs and boosting profitability.
• Favorable Industry Dynamics: Luxury hotel room demand expected to grow at 10.6% CAGR vs 5.9% supply CAGR (FY24–28).

Financial Snapshot (in ₹ Crs)

Conclusion

Schloss Bangalore is well-positioned to benefit from the luxury hospitality boom, with a 20% upside potential to ₹493. The combination of asset-light growth, strong occupancy, and improving profitability makes this a stock to watch closely in the coming months.

Conclusion | Market Outlook 5th August

The Indian stock market begins the week on a positive note, with Nifty and Sensex bouncing back after last week’s volatility. However, caution remains as global trade tensions and the upcoming RBI monetary policy decision are likely to guide market sentiment.

Key takeaways for Market Outlook 5th August:

• Indices: Nifty and Sensex show recovery, but short-term trend remains range-bound with key resistance levels ahead.
• Macro Events: RBI policy meet (Aug 4–6) and U.S. tariffs effective Aug 7 will be crucial triggers for market direction.
• IPO Buzz: Highway Infrastructure, Aditya Infotech, and Flysbs Aviation are generating strong listing expectations, while other IPOs remain muted.
• Stock Focus: Schloss Bangalore (The Leela) stands out with 20% upside potential, supported by strong luxury hotel demand and robust financials.

Investors should adopt a selective and event-driven approach this week, focusing on high-quality stocks and promising IPOs, while keeping an eye on macro triggers that could influence market sentiment.

More Articles

Underrated Stocks: How to Find Multibaggers from Your Daily Life

Best Screener Queries for Stock Selection: Find Hidden Gems Before Others Do

Predict Stock Reaction Before Earnings Using Market Signals