Market Outlook 5th September 2025: Strong NIFTY Levels, Top IPO & Sector News | Onedemat

Introduction: Market Outlook 5th September

Good morning and welcome to your Market Outlook 5th September Edition.

Yesterday’s market session was a rollercoaster ride. Early morning optimism had investors cheering as hopes of GST reforms and strong buying in auto and FMCG stocks pushed benchmarks higher. The Sensex flirted with the 81,000 mark, and Nifty edged closer to 24,900, sparking whispers of another record-breaking rally.

But as the day wore on, reality set in. Profit booking crept in across sectors, while IT stocks stumbled, dragging the indices down slightly. Even the smallcap and midcap leaders of the recent bull run faced selling pressure, reminding everyone that elevated valuations can make the market jittery.

📊 A quick glance at yesterday’s numbers:

• Nifty 50: 24,733 ▲18.6 (0.075%)
• Sensex: 80,746 ▲179.03 (0.22%)
• Nifty Bank: 54,101 ▲33.55 (0.062%)
• Nifty IT: 35,118 ▼356.5 (1.00%)
• S&P BSE SmallCap: 52,711 ▼313.69 (0.59%)

As we step into today’s trading, all eyes will be on sectors poised to lead, fresh corporate cues, and mid/small-cap movements. The market story for Market Outlook 5th September is ready to unfold, and it promises to keep investors on their toes.

Index Technical View | Market Outlook 5th September

As we step into today’s session, the technical picture suggests a mixed setup. SENSEX and NIFTY are showing signs of cautious optimism, while BANKNIFTY faces short-term pressure. Here’s a closer look according to Equitypandit analysis:

SENSEX | Market Outlook 5th September

SENSEX entered a positive trend in the last session, and the index is showing resilience above 80,345. Traders holding long positions can continue with a daily closing stoploss at 80,345, while fresh long entries are suggested only if the index sustains above this level.
The market could see momentum if SENSEX breaks through the first resistance zone. Investors should watch the mid-term trend, as surpassing 81,247 could ignite further upside.

• Support Levels:
  • 80,399
  • 80,080
  • 79,551
• Resistance Levels:
  • 81,247
  • 81,776
  • 82,095
• Tentative Range: 81,400 – 80,035

NIFTY | Market Outlook 5th September

NIFTY also remains in a positive trend, but yesterday’s cautious session shows that short-term profit booking can create volatility. Long positions can be maintained with a stoploss at 24,632 (daily close), while a breach below this level could invite short-term corrections.
Resistance levels around 24,907 – 25,180 will be key for bulls to test, while support zones will determine whether the market can hold its gains.

• Support Levels:
  • 24,635
  • 24,535
  • 24,362
• Resistance Levels:
  • 24,907
  • 25,080
  • 25,180
• Tentative Range: 24,944 – 24,523

BANKNIFTY | Market Outlook 5th September

BANKNIFTY is currently under short-term pressure, despite broader market optimism. Traders holding short positions can continue with a daily closing stoploss of 54,346, while fresh long positions are advised only if the index closes above this key level.
The near-term trend will be closely watched, as a sustained move above 54,360 could reverse the current weakness, while support zones around 53,881 – 53,403 will determine the downside risk.

• Support Levels:
  • 53,881
  • 53,687
  • 53,403
• Resistance Levels:
  • 54,360
  • 54,645
  • 54,839
• Tentative Range: 54,588 – 53,562

News & Stocks That Might Be Impacted | Market Outlook 5th September

The market opens today with a mix of optimism and caution. Investors are digesting policy changes, corporate actions, and sector-specific developments that could influence sentiment across key indices.

Food Delivery & Quick Commerce – GST Impact

Yesterday, Finance Minister Nirmala Sitharaman announced that delivery fees will now attract 18% GST, impacting major food delivery platforms. Companies like Swiggy, Zomato, and Blinkit will face incremental cost pressure, though brokers expect most of it to be passed on to consumers.

• Impact on Stocks:
  • Swiggy Ltd. down 1.5% yesterday, with profit margins under scrutiny
  • Zomato’s parent (Eternal) ended nearly flat, reflecting cautious investor sentiment

Investors should watch for any profitability concerns or pricing strategies as the new GST rules take effect from September 22.

Eldorado Agritech IPO Filing

Eldorado Agritech Ltd. filed preliminary papers with SEBI for an IPO worth up to Rs 1,000 crore (fresh + OFS). The Hyderabad-based company provides seed-to-harvest solutions, with a strong portfolio in maize, paddy, cotton, wheat, bajra, and vegetables.

• Growth Metrics:
  • Revenue FY25: ₹441.48 crore (+25.3% YoY)
  • Profit FY25: ₹71.86 crore (+47.3% YoY)
  • Strong focus on R&D, patents, and registrations for agrochemicals and bio-stimulants

This IPO could attract investors seeking exposure to agritech and FMCG-linked sectors.

Poonawalla Fincorp NCD Issue

The company plans to raise Rs 1,500 crore via NCDs on a private placement basis. With interest on delayed payments at 2% above coupon rate, this issuance targets investors looking for structured fixed-income returns.

• Highlights:
  • Base issue: ₹1,000 crore, green-shoe option: ₹500 crore
  • Q1FY26 profit declined by 78.4% to ₹63 crore due to higher expenses
  • Total income increased to ₹1,314 crore from ₹996 crore YoY

The NCD issuance will be closely monitored for creditworthiness and debt-servicing ability.

TDK Lithium-Ion Battery Plant in Haryana

Union Minister Ashwini Vaishnaw inaugurated a Rs 3,000 crore lithium-ion battery plant by Japanese firm TDK in Sohna, Haryana. The plant will manufacture around 20 crore battery packs annually for mobiles, wearables, and laptops, covering ~40% of India’s domestic mobile sector demand.

• Investment Implications:
  • Strengthens domestic electronics manufacturing and supply chain
  • Employment generation: ~5,000 people
  • Opens opportunities for other tech and EV-related stocks

Equity Share Splits – Rolex Rings & GHV Infra

Rolex Rings saw a 2.12% intraday rise after approving a 1:10 share split, making shares more accessible for retail investors. Similarly, GHV Infra Projects announced a 1:10 split to enhance liquidity and attract investors.

• Key Impact:
  • Increases retail participation
  • Improves trading volumes and marketability of shares
  • Positive sentiment expected around corporate governance and board-approved decisions

IPO Watch | Market Outlook 5th September

The IPO segment remains in focus today as investors eye upcoming listings and GMP trends. Here’s a snapshot of Mainboard and SME IPOs generating buzz in the market:

Mainboard IPOs – Market Outlook 5th September

IPO Name	GMP (Listing Gain)	Open Date	Close Date
Urban Co.	₹19 (18.45%)	10-Sep	17-Sep
Shringar House of Mangalsutra	₹25 (15.15%)	10-Sep	17-Sep
Amanta Healthcare	₹8.5 (6.75%)	1-Sep	9-Sep

Quick Take:
Urban Co. and Shringar House of Mangalsutra are showing strong listing gains in the 15–18% range, making them attractive for short-term listing gains. Amanta Healthcare, while lower, still offers ~7% upside, reflecting steady investor interest in healthcare-focused IPOs.

SME IPOs – Market Outlook 5th September

IPO Name	GMP (Listing Gain)	Open Date	Close Date
Airfloa Rail Technology	₹150 (107.14%)	11-Sep	18-Sep
Karbonsteel Engineering	₹17 (10.69%)	8-Sep	15-Sep
Sharvaya Metals	₹19 (9.69%)	4-Sep	12-Sep
Austere Systems	₹23 (41.82%)	3-Sep	11-Sep
Goel Construction	₹48 (18.25%)	2-Sep	10-Sep
Optivalue Tek Consulting	₹6 (7.14%)	2-Sep	10-Sep
Snehaa Organics	₹3 (2.46%)	2-Sep	5-Sep
Abril Paper Tech	₹3 (4.92%)	2-Sep	5-Sep

Quick Take:
Airfloa Rail Technology leads with spectacular ~107% expected listing gain, signaling massive investor demand. Austere Systems and Goel Construction also show strong interest. Other SMEs are moderate but still provide decent short-term upside for retail investors seeking exposure to emerging small-cap opportunities.

Stocks in Radar – Market Outlook 5th September

L&T Finance Ltd (LTF)

Research By: Motilal Oswal

Current Snapshot

• CMP: ₹227 | Target: ₹260 | Upside: ~15%
• Market Cap: ₹567.6B / $6.4B
• 52-Week Range: ₹228 – ₹129
• Equity Shares: 2,499 million

L&T Finance (LTF) has started FY26 on a stable note despite ongoing challenges in the microfinance (MFI) sector and unsecured business loans. The company continues its measured growth strategy with a focus on secured and prime segments while leveraging Project Cyclops, its AI-ML-powered underwriting platform, to strengthen credit discipline.

Growth & Strategy

• LTF is expanding its customer base with technology-driven underwriting and maintaining strong collection efficiency across all segments.
• The company successfully integrated Paul Merchants Finance’s gold loan business, adding 130 branches and 700+ employees. The gold loan book now stands at ~₹13B, expected to further expand through its ‘Sampoorna’ multi-product branches.
• Digital partnerships with Amazon, CRED, and PhonePe are contributing to strong personal loan disbursements (₹6.5B in 1QFY26).

Financials & Valuation

• Total Income (FY25-FY27E): ₹86.7B → ₹122.2B
• PAT (FY25-FY27E): ₹26.4B → ₹41.2B
• EPS CAGR: 13.8% → 32.4%
• P/E (FY27E): 13.7x, P/BV: 1.8x, Div Yield: 1.8%
• Expected RoA/RoE by FY27: 2.7% / 14%

Margins & Asset Quality

• NIMs expected at ~9.5–9.6% in FY26/FY27, slightly below FY25’s 9.9% due to loan mix shift.
• Credit costs moderating, with GNPA expected to improve to 2.4–2.5% by FY27 from 3.3% in FY25.
• Macro-provisions provide a buffer of ₹2.75B as of Jun’25.

Technological Edge

• Project Cyclops: fully deployed in 2W segment, phased rollout in farm, SME, and personal loans ongoing.
• Impact expected to strengthen asset quality and drive scalable growth from 4QFY26 onward.

Support & Resistance

• Support: ₹220 – ₹215 – ₹210
• Resistance: ₹240 – ₹250 – ₹260

Outlook
LTF is well-positioned for sustained growth, supported by technology-led underwriting, strategic diversification, and robust partnerships. With asset quality improving and margin pressure easing, the stock offers a BUY opportunity with a target of ₹260. Key risks include any prolonged MFI stress, deterioration in retail segments, or near-term NIM pressure.

Conclusion – Market Outlook 5th September

The market kicked off on a strong note, fueled by optimism around GST reforms and healthy sectoral buying. However, profit booking in IT and midcap stocks reminded investors to stay cautious amid elevated valuations. With indices hovering near record highs, short-term volatility is likely, but fundamentally strong stocks and well-positioned IPOs continue to offer opportunities.

Investors should focus on quality growth plays like L&T Finance, monitor the evolving GST impact on delivery and quick-commerce stocks, and keep an eye on upcoming IPOs for tactical participation. Discipline, selective exposure, and a long-term perspective remain key in navigating this market.

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