Indian benchmark equity indices settled lower on Wednesday, dragged by financial and IT stocks. The S&P BSE Sensex closed 0.25% lower at 82,352, while the NSE Nifty50 ended just below the 25,200 mark. "The near-term uptrend status remains intact for Nifty and any consolidations and minor dip down to 25K mark is expected to be a buying opportunity. One may expect Nifty to surge towards the new all-time highs soon around 25350-25400," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. Here are 8 stock recommendations for Thursday:

On Wednesday, India's benchmark index Sensex fell by about 203 points to close at 82,352. Despite this decline, 6 stocks from the BSE largecap index hit their highest prices of the past year. Reaching a 52-week high is significant as it indicates the highest price a stock has achieved over the last year, providing valuable insights for traders and investors. This milestone is important for evaluating a stock’s current value and predicting future price movements.

Responding to reports on the housing rent allowance (HRA) and toxic work culture issues raised by the staff, market regulator said these concerns are misguided by external elements and perhaps misplaced.

During their meeting on July 24, 2024, the board of directors of Sona Comstar, a global automotive systems and components manufacturer with operations in India, China, Mexico, and the US, gave their approval for a Qualified Institutional Placement (QIP).

Vedanta's long-term ratings were upgraded by ICRA following successful fund-raising efforts, including a $1 billion QIP and $400 million OFS of Hindustan Zinc shares. These moves are expected to improve credit metrics and reduce debt, enhancing financial flexibility.

Long unwinding refers to the selling of positions or stocks owned for a longer period either to book profit or to exit it in anticipation of impending bearishness. In Wednesday's trading session, five stocks witnessed a long unwinding. Here's the list:

Wall Street's main indexes opened lower on Wednesday as fresh worries over the health of the U.S. economy kept investors on the sidelines in the run-up to labor data.

Historically, September hasn't been kind to these three banks. BoI has seen declines in 9 out of the last 10 Septembers, while SBI and Bank of Maharashtra have fallen 8 times each during the same period. On average, their September returns are negative, with BoI at -7.7%, SBI at -3.4%, and Bank of Maharashtra at -3.7%. The most significant drop occurred in 2020, during the Covid-19 pandemic, with losses ranging from 18% to 23%.

Indian market recouped losses but still closed lower on Wednesday tracking muted global cues. The S&P BSE Sensex fell over 200 points while the Nifty50 closed below the 25200 level.

According to Nagaraj Shetti of HDFC Securities, the Nifty is currently hovering around the critical support level of 25,000, which coincides with both an ascending trend line and the 10-day EMA. The daily chart displays a bullish pattern, characterized by higher highs and higher lows.

Gala Precision Engineering's IPO has been subscribed 201 times on its final day, driven by non-institutional investors and QIB categories. The issue, priced between Rs 503-529 per share, aims to fund new facilities and repay debt. Analysts are optimistic about the company's market position and valuation.

As part of the OFS, the government has opted to exercise the greenshoe option, increasing the total stake sale to 6.78%. The government plans to sell up to a 3.39% equity stake on September 4 for non-retail investors. At an offer price of Rs 395 per share, the sale is expected to generate approximately Rs 4,700 crore for the government's exchequer.

The listing fell slightly short of expectations, despite Ecos Mobility's shares trading at a grey market premium (GMP) of 48% above the issue price before the debut. The IPO garnered significant attention, with a subscription rate of 64 times, primarily driven by non-institutional investors.

Short covering happens when traders buy back shares they previously sold short, often due to a shift in market sentiment or new information. This usually results in a decrease in open interest and can drive the stock price higher. In Wednesday's trading session, five stocks saw short covering. Here's the list:

Securities and Exchange Board of India officials made an unprecedented complaint to the finance ministry in August, accusing the capital market regulator’s leadership of fostering a toxic work culture. “Shouting, scolding, and public humiliation, have become a norm in meetings,” said the August 6 letter, which Economic Times has reviewed.

Between now and November 30, $21 billion worth of shareholder lock-ins across 38 companies will expire. This includes shares from Ceigall India, Unicommerce, and Firstcry, among others. Not all unlocked shares will immediately hit the market, as some are held by promoters.

Krishna Institute of Medical Sciences (KIMS) set September 13 as the record date for a 1:5 stock split. The announcement propelled KIMS shares up 3.5% to a new high of Rs 2,655.25 on the BSE.

Azad Engineering's shares surged nearly 8% to Rs 1,596.40 after Investec initiated a buy rating with a Rs 1,850 target, citing strong growth prospects and a 40% CAGR forecast.

In 2024, the BSE Healthcare Index climbed around 36%, outpacing the benchmark Sensex's 14% gain. ETMarkets has identified 8 healthcare stocks that have doubled investors' wealth this year, with returns ranging from 100% to 175%. Of these, 5 have seen greater interest from institutional investors, with both FIIs and MFs increasing their stakes in the June quarter compared to March 2024. (Data Source: ACE Equity)

Indian benchmark equity indices declined on Wednesday, dragged by IT stocks and tracking a drop in global peers on resurgent worries of a slowdown in the United States. However, in Wednesday's session, six midcap stocks from the Nifty200 index recorded fresh 52-week highs. Here's the list:

Between now and November 30, $21 billion worth of shareholder lock-ins across 38 companies will expire. This includes shares from Ceigall India, Unicommerce, and Firstcry, among others. Not all unlocked shares will immediately hit the market, as some are held by promoters.

While they are all classified under the broad category of auto stocks, the operating matrix of each company is very different. For heavy commercial vehicle players the factors impacting the sales are very different from a two wheeler maker and a passenger car maker has a different matrix to deal with when it comes to raw material and sales. In the current economic cycle, it was HCV and LCV which were the first ones to see an uptick, just after the covid. In the last few days, there have been some reports which suggest that HCV and LCV sales have slowed. Is this an indication that some cool off around the corner. But if there is slow down then it is an opportunity because of structural transformation which is taking place in the industry.

Despite facing challenging market conditions and significant international price volatility in recent months, the company managed to achieve sales of 5.92 lakh tonnes during the April-August period, maintaining nearly the same level as the previous year.

CIL reported sales volumes of 52.1 million tonnes in August 2024, a 12% year-on-year decline, primarily due to weak power demand amid heavy rainfall. Over the July-August 2024 period, volumes dropped by 5.7% year-on-year, suggesting that the decrease wasn't solely due to the monsoon, but also due to broader weak demand putting pressure on CIL's sales.

Japan's Nikkei share average dropped over 4% on Wednesday, influenced by declines in chip-related stocks and renewed concerns about the U.S. economy following weak manufacturing data. The broader Topix index also fell, with most industry sub-indexes declining. Investors remain cautious ahead of the upcoming U.S. non-farm payrolls data release.

The listing fell slightly short of expectations, despite Ecos Mobility's shares trading at a grey market premium (GMP) of 48% above the issue price before the debut. The IPO garnered significant attention, with a subscription rate of 64 times, primarily driven by non-institutional investors.

Sebi Chairperson Madhabi Puri Buch faces mounting allegations from various quarters, including Hindenburg Research, Congress, Zee's Subhash Chandra, and internal employee protests. The accusations range from conflicts of interest to fostering a toxic work environment. All parties involved have issued denials or clarifications regarding the claims.

ONGC declined to the day’s low of Rs 309.2, with a fall of 4.2%. Chennai Petroleum Corporation shares dropped 5% to a low of Rs 933.3. GAIL and Oil India also witnessed a slide of up to 2%. Crude oil prices continued to slip on Wednesday. The US crude futures fell over 0.5%, following a more than 4% drop on Tuesday.

Gala Precision Engineering's IPO has been subscribed 82 times on its final day, driven by non-institutional investors and retail categories. The issue, priced between Rs 503-529 per share, aims to fund new facilities and repay debt. Analysts are optimistic about the company's market position and valuation.

“ITC stock has seen a slow and gradual upmove in last couple of weeks, but prices have traded above the 40 DEMA support and the momentum is positive. Traders can buy for a target of Rs 527-536 in the next 3-4 weeks,” Ruchit Jain, Lead Research, 5paisa.com, said.

Shares of paint companies like Asian Paints and Indigo Paints saw gains of up to 6% on Wednesday due to a decline in crude oil prices. This drop in crude prices, crucial for producing raw materials used in paint manufacturing, contrasted with the overall market trend where indices Nifty and Sensex were trading lower.

Shares of Cochin Shipyard (CSL), a PSU defense stock, dropped 24% from their all-time high of 2979 within the past month and fell 8% over the last two weeks. The stock recently fell below the key 100-day Exponential Moving Average (DEMA), indicating ongoing weakness.

Raymond's shares rose by 8% over two days, reaching Rs 2,179 on the BSE. This surge comes ahead of the listing of its lifestyle business, Raymond Lifestyle (RLL). Analysts from Motilal Oswal and Ventura are optimistic about RLL's growth prospects, especially in the premium wedding collections and ethnic wear markets.

AU Small Finance Share Price: AU Small Finance Bank's shares rose 2% after announcing its application to the Reserve Bank of India for transitioning to a universal bank. The bank had earlier approved this move in July and formed a committee for the application. AU reported a 30% year-on-year rise in net profit for the June quarter.

Understanding risks, recognizing market cycles, evaluating fundamentals, analyzing the sector, assessing management, reviewing financial strategies, differentiating between valuation types, employing a phased investment approach, and preparing for volatility. You can navigate the complexities of small-cap investing with greater confidence and avoid greed, fear which are elements which lead to wrong decisions. Even after all the effort, be ready to go wrong. That is what small caps are all about and if you get it right then all mistakes are pardoned. But the fact is that even the promoters of these companies don't get it right in the short term.

Paramatrix Technologies Share Price: Paramatrix Technologies' shares listed on the NSE SME platform with a 5% premium, debuting at Rs 115 against an issue price of Rs 110. The IPO, a fresh equity sale of 30.76 lakh shares, was subscribed over nine times. Funds will be used for infrastructure, service enhancement, and geographical expansion.

With two major domestic events behind us, the market will continue to closely monitor developments regarding the Fed rate cut expected around September 2024, the pickup during the festive season, US bond yields, and the US presidential elections in November 2024. In the past month, the benchmark index Nifty 50 increased by 1.1%, while the Midcap and Small Cap indices rose by 0.5% and 1.2%, respectively. With this, domestic brokerage firm Axis Securities has picked 7 ideas from small and midcap segments with upside potential of up to 31%:

Despite a rise in promoter selling, 13 companies have seen promoters consistently increase their stake over the last three quarters. ET Markets found that two of these companies delivered multibagger returns over the past year. Such stake increases are generally viewed positively, signaling confidence and aligning promoters' interests with shareholders.

AU Small Finance Bank's shares rose 2% after announcing its application to the Reserve Bank of India for transitioning to a universal bank. The bank had earlier approved this move in July and formed a committee for the application. AU reported a 30% year-on-year rise in net profit for the June quarter.

Indian equity indices Sensex and Nifty traded lower on Wednesday amid concerns over a U.S. economic slowdown and caution ahead of key data influencing the Federal Reserve's interest rate decision. IT, Financial, and Metal stocks experienced significant declines.

Ecos Mobility Share Price: The IPO has garnered strong investor interest, with a subscription rate of 64.18X. "The IPO's valuation appears high based on the P/E ratio. Given the mixed financial performance, investors might consider a wait-and-see approach," advised Shivani Nyati, Head of Wealth at Swastika Investmart. Ecos Mobility has provided chauffeured car rentals & employee transportation services to corporate clients, including Fortune 500 companies, for over 25 years.

Aeron Composite's shares listed on the NSE SME platform with a 20% premium at Rs 150, compared to the issue price of Rs 125. The IPO saw a subscription of over 40 times, raising Rs 56.1 crore. Proceeds will fund a new manufacturing unit and other corporate purposes.

Shares of defense companies such as BEML, Paras Defence, and Mazagon Dock surged by up to 3% on Wednesday following the Defence Acquisition Council's approval of proposals worth Rs 1.4 lakh crore to boost the Indian Armed Forces' operational capabilities. The defense ministry's emphasis on indigenization is evident, with 99% of the acquisitions expected to be sourced from domestic players.

Indian equity indices Sensex and Nifty opened lower on Wednesday amid concerns over a U.S. economic slowdown and caution ahead of key data influencing the Federal Reserve's interest rate decision. The BSE Sensex fell by 576 points, while the Nifty50 declined by 193 points. IT, Financial, and Metal stocks experienced significant declines.

Shares of General Insurance Corporation (Re) of India dropped by 5.4% to Rs 398.60 as the government began selling its 6.78% stake via an offer for sale at a floor price of Rs 395 per share. The total size of the OFS is estimated at Rs 4,701 crore.

Jindal Stainless has been trading within a range for the past six months but shows signs of recovery. After retesting its 200-day Exponential Moving Average in August, experts suggest the stock could reach levels above Rs 900 in the next 3-4 weeks, indicating a positive outlook.

State-owned Ircon International and 12 other companies are in focus today as they have set September 5 as the record date for determining shareholders eligible for dividend payments. Ircon International announced a final dividend of Rs 1.30 per share for the financial year 2023-24, with payments starting from September 27.

Sapphire Foods, the operator of KFC and Pizza Hut, has set September 5, 2024, as the record date for a 1:5 stock split. This move aims to enhance liquidity and make shares more affordable for retail investors. Shareholders on record by this date will see each Rs 10 share split into five Rs 2 shares.

HSBC has reiterated its buy rating on Honasa Consumer's Mamaearth, raising the target price to Rs 570 from Rs 550. Honasa is expected to achieve over 20% structural growth with ongoing margin expansion. The company’s house of brands strategy aims to capture greater market share in high-growth personal care categories, supported by enhanced distribution, new brand scaling, and R&D investment.

Aarti Drugs has set September 5 as the record date for its Rs 60 crore share buyback, making today the last day to buy shares to be eligible. The company plans to buy back 6.65 lakh shares, representing 0.72% of its paid-up capital. This is Aarti Drugs' sixth buyback since 2016.