Market Outlook 7 August: Nifty, Sensex Trend, IPO Updates & Stocks in Focus

Intro: Market Outlook 7 August

Good morning and welcome to your Market Outlook 7 August edition.

Indian equities ended in the red on August 6, weighed down by IT and small-cap stocks, after the RBI decided to maintain the repo rate at 5.5% with a neutral stance. The move signaled a wait‑and‑watch approach, dashing hopes of an immediate rate cut.

The Nifty 50 slipped 0.32% to 24,570.25, while the Sensex fell 0.18% to 80,561.64. Weakness was pronounced in Nifty IT, which dropped 1.88%, whereas Bank Nifty managed a modest 0.12% gain to 55,425.50 as banking and financials showed resilience. Small-cap stocks bore the brunt, with the S&P BSE SmallCap down 1.19% at 52,200.85.

Markets are expected to remain volatile today as traders digest the RBI policy outcome and global cues, with interest‑sensitive sectors likely to remain in focus.

In today’s newsletter, we break down the technical setup for key indices, analyze sector trends post-RBI policy, spotlight news-driven stocks, share the latest IPO action, and feature a stock on our radar for potential upside.

Let’s dive into your full Market Outlook for 7 August.

Index Technical View | Market Outlook 7 August

According to Equity Pandit analysis, the market remains under pressure, with all major indices showing a negative trend. Key support and resistance levels will guide intraday moves today.

Sensex (80,544)

The Sensex is in a negative trend. Short positions can be held with a stoploss at 81,280, while fresh longs may only be considered if the index closes above this level.

• Support: 80,384 – 80,223 – 79,998
• Resistance: 80,769 – 80,995 – 81,155
• Tentative Range: 79,888 – 81,199

Nifty 50 (24,574)

The Nifty 50 also remains weak, with short positions safe below 24,800. Fresh longs may emerge on a close above this level.

• Support: 24,518 – 24,463 – 24,386
• Resistance: 24,651 – 24,727 – 24,783
• Tentative Range: 24,374 – 24,774

Bank Nifty (55,411)

Bank Nifty is under slight pressure but holding key supports. Shorts are safe below 55,878, and fresh buying may come only above this mark.

• Support: 55,239 – 55,068 – 54,908
• Resistance: 55,571 – 55,731 – 55,903
• Tentative Range: 54,911 – 55,911

Traders should monitor these ranges closely to manage intraday positions, while investors can wait for a breakout above key resistance levels for trend confirmation.

News and Stocks That Might Be Impacted

The market sentiment today is being shaped by a mix of corporate actions, IPO developments, and macroeconomic signals. Here are the most notable updates that could influence trading.

Sify Technologies Prepares $500 Million Data-Center IPO

Sify Technologies Ltd.’s data-center arm, Sify Infinit Spaces Ltd., is preparing to file its Draft Red Herring Prospectus (DRHP) with SEBI in the coming weeks. The IPO, expected to raise $500 million, will combine fresh and existing shares and could value the company at nearly $3 billion.

Sify is a pioneer in India’s data-center industry, operating 14 facilities with 188 MW capacity, and has recently raised ₹16 billion from Kotak’s funds. The IPO comes as India’s data-center capacity is projected to grow 77% to 1.8 GW over the next four years, driven by cloud adoption and AI expansion.

Stocks that may react:

• Sify Technologies (NASDAQ: SIFY) for ADR movements.
• IT & Cloud peers: HCL Tech, Tech Mahindra.
• JM Financial & Kotak Mahindra Bank as IPO bookrunners.

Mahindra & Mahindra Rolls Out Landmark ESOP Plan

In a first-of-its-kind move, Mahindra & Mahindra (M&M) is offering a one-time ESOP program worth ₹400–500 crore to 23,000 employees, including factory-floor workers. The initiative will cover M&M (Auto & Farm), Mahindra Electric Automobile, and Mahindra Last Mile Mobility.

The decision comes after M&M’s Q1 FY26 net profit rose 24% YoY to ₹4,083 crore, with revenue reaching ₹45,529 crore. Management said the plan reflects gratitude to employees for driving a 12x market-cap increase since April 2020.

Stocks that may react:

• Mahindra & Mahindra: Positive employee morale and strong Q1 earnings.
• Mahindra Electric (future listing): Indirect sentiment boost.

India’s Forex Reserves Drop $9.3 Billion

India’s foreign exchange reserves fell to $688.9 billion as of August 1, a drop of $9.3 billion in a week. The decline is likely due to RBI dollar sales aimed at defending the rupee, which came under pressure after U.S. President Donald Trump imposed 25% tariffs on Indian goods and warned of further hikes due to India’s Russian oil imports.

This sudden fall in reserves signals currency volatility and could influence FII sentiment in the short term.

Stocks that may react:

• Export-oriented IT & Pharma: Infosys, TCS, Dr. Reddy’s.
• Aviation & Import-dependent firms: IndiGo, SpiceJet.
• PSU Banks: Sensitive to forex movements.

Luxury Housing Sales Surge in Delhi-NCR

Luxury housing in Delhi-NCR surged 9% in H1 2025, with 5,168 units sold versus 4,763 last year. Prices above ₹5 crore dominate this segment, with Gurugram leading 91% of NCR sales. Demand is concentrated around Southern Peripheral Road and Dwarka Expressway, boosted by new infrastructure and aspirational buying.

The region now accounts for 65% of all luxury sales in India, indicating robust demand for premium real estate even amid broader market volatility.

Stocks that may react:

• Real Estate Developers: DLF, Godrej Properties, Sobha.
• Building Material Companies: Asian Paints, Kajaria Ceramics.

Overall, today’s market is expected to see sector-specific moves—cloud and IT stocks on Sify’s IPO buzz, auto on M&M’s ESOP announcement, export and import-linked sectors on forex shifts, and real estate on luxury demand.

IPO Update | Market Outlook 7 August

The IPO market continues to witness selective momentum, with a few issues delivering strong grey market premiums while others remain muted. Highway Infrastructure leads the mainboard with a 52.86% GMP, while Medistep Healthcare tops the SME segment.

Mainboard IPOs to Watch

IPO Name	Open	Close	Listing	GMP (Approx)
BlueStone Jewellery IPO	11-Aug	13-Aug	19-Aug	₹0 (0%)
JSW Cement IPO	7-Aug	11-Aug	14-Aug	₹9.5 (6.46%)
All Time Plastics IPO	7-Aug	11-Aug	14-Aug	₹0 (0%)
Knowledge Realty Trust REIT IPO	5-Aug	7-Aug	18-Aug	₹1.5 (1.5%)
Highway Infrastructure IPO	5-Aug	7-Aug	12-Aug	₹37 (52.86%)

💡 Top Performer: Highway Infrastructure IPO, with 75x subscription and 52.86% GMP, remains the highlight of the mainboard space.

SME IPOs Gaining Traction

IPO Name	Open	Close	Listing	GMP (Approx)
Medistep Healthcare NSE SME	8-Aug	12-Aug	18-Aug	₹12 (27.91%)
Connplex Cinemas NSE SME	7-Aug	11-Aug	14-Aug	₹31 (17.51%)
Mahendra Realtors NSE SME	12-Aug	14-Aug	20-Aug	₹0 (0%)
Icodex Publishing BSE SME	11-Aug	13-Aug	19-Aug	₹0 (0%)
Star Imaging BSE SME	8-Aug	12-Aug	18-Aug	₹0 (0%)

💡 Top Performer: Medistep Healthcare IPO, with a 27.91% GMP, leads SME enthusiasm this week.

Stocks in Radar | Market Outlook

Cyient DLM Ltd.

• CMP: ₹431
• Target Price: ₹512
• Potential Upside: 18.8%
• Recommendation: BUY
• Research by: Deven Choksey

Business Overview:
Cyient DLM Ltd. operates in the Electronics Manufacturing Services (EMS) sector, specializing in Aerospace, Industrial, Medical Technology (Med-Tech), and Defense products. The company has established itself as a key player in high-value export markets, with ~90% of revenue now coming from exports. Its recent Altek acquisition has strengthened the Industrial and Med-Tech verticals, giving the company a more diversified and higher-margin revenue base.

Key Financial Performance (Q1 FY26):

• Revenue: ₹2,784 Mn (+8% YoY / -35% QoQ), below estimates due to a sharp decline in the Defence segment after the completion of a large FY25 order.
• EBITDA: ₹251 Mn (+25% YoY / -56% QoQ) with 9% margin, driven by higher export mix and better gross margins.
• PAT: ₹75 Mn (-29.6% YoY), affected by lower other income (-53% YoY) and higher amortization from the Altek acquisition (+57% YoY).
• Segmental Performance:
  • Aerospace: ₹1,114 Mn (+66% YoY) – strong order backlog, accounts for 1/3rd of total orders.
  • Industrial: ₹640 Mn (+397% YoY) – robust demand post Altek acquisition.
  • Med-Tech: ₹613 Mn (+138% YoY) – driven by international orders.
  • Defence: ₹251 Mn (-83% YoY) – major order completion caused temporary decline.

Outlook & Valuation:
Cyient DLM’s growth will be led by Aerospace, Industrial, and Med-Tech segments, supported by a structural shift to higher-margin products. The Defence vertical will remain subdued in the near term, but margin expansion and global demand in Aerospace and Med-Tech are expected to support earnings growth.

• Revenue CAGR FY25–27E: 15.9%
• PAT CAGR FY25–27E: 40.5%

Deven Choksey Research values the stock at ₹512 based on 28x Jun’27E EPS, reiterating a BUY with 18.8% upside potential.

💡 For investors, this stock offers a play on the global shift toward high-margin EMS products with strong export exposure.

Conclusion

Markets continue to trade with a cautious tone after the RBI maintained the repo rate at 5.5% and adopted a neutral stance. While Sensex and Nifty remain in a short-term negative trend, selective opportunities persist in high-conviction sectors such as Aerospace, Industrial Manufacturing, and Med-Tech.

Key Takeaways for Today:

• Monitor Nifty 50 and Bank Nifty support/resistance levels closely to guide intraday strategy.
• IPO activity remains strong, with SME counters like Medistep Healthcare and Connplex Cinemas seeing robust interest, while Highway Infrastructure IPO leads the mainboard GMP rally.
• Stock in Focus: Cyient DLM Ltd. offers 18.8% upside potential as it leverages a shift toward high-margin exports.

In today’s market, staying selective with quality stocks and tracking sectoral momentum is crucial for navigating short-term volatility while positioning for medium-term opportunities.

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