Reliance, Bharti Airtel to ICICI Bank: Motilal Oswal lists its top largecap, midcap, smallcap stocks to buy
Given the current volatility, the brokerage firm has a clear bias towards largecaps and domestic plays.
For example, Reliance Industries, Bharti Airtel, ICICI Bank, Indian Hotels, HDFC AMC and BSE are among the stocks in Motilal's model portfolio.
Among the sectors, the brokerage firm is overweight on BFSI, consumer discretionary, industrials, healthcare, IT, and telecom, while it is underweight on oil and gas, cement, automobiles, real estate, and metals.
Reliance Industries, Bharti Airtel, ICICI Bank, L&T, Kotak Mahindra Bank, Titan, Mahindra & Mahindra, Trent, and Tech Mahindra are the top picks of Motilal Oswal from the largecap segment.
Indian Hotels, HDFC AMC, BSE, Suzlon Energy, Dixon Tech, SRF, Jindal Stainless, Coforge, Page Industries, Kaynes Tech, and LT Foods are the top picks of Motilal Oswal from the mid and smallcap segments.
The brokerage firm pointed out the resilience of the Indian economy amid geopolitical tensions and slowing global growth.
"India's nominal GDP grew 9.8 per cent in FY25, surpassing market expectations, and is projected to accelerate further to 10.8 per cent in FY26," said Motilal Oswal.
"Although corporate profit growth moderated in FY25 due to a high base set in FY24, a slowdown in government spending during the first half of the financial year 2025 (H1FY25) amid elections, weak consumption, and volatile exports led by global uncertainties, we expect a gradual recovery ahead," the brokerage firm said.
The Indian stock market rebounded in March after a record five consecutive months of losses. The Nifty 50 has been in the green monthly since March.
The smallcap segment has underperformed the mid and largecaps over the last year. As the brokerage firm pointed out over the last 12 months, largecaps and midcaps have gained 6 per cent and 7 per cent, respectively, outperforming smallcaps, which have risen 4 per cent.
According to Motilal Oswal, during the last five years, midcaps (CAGR: 32.4 per cent) have significantly outperformed largecaps (CAGR: 19.9 per cent) by 158 per cent, while smallcaps (CAGR: 32.8 per cent) have markedly outperformed largecaps by 165 per cent.
On the earnings front, corporate profit-to-GDP stood at a 17-year high in FY25, the brokerage firm underscored.
"In 2025, the corporate profit-to-GDP ratio for the Nifty-500 Universe remained at 4.7 per cent, marking a 17-year high. Notably, for listed India Inc., the ratio stood at 5.1 per cent, at a 14-year high," said Motilal Oswal.
However, stretched valuation of the market has emerged as a key concern.
Motilal pointed out that the Nifty 50 has gained nearly 8 per cent this year so far and with this rally, the index trades at 22.5 times FY26E earnings, near its long-period average of 20.7 times.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
38 minutes ago
- India Today
Nitin Gadkari's app-cab reform: Drivers to get care, customer is the king
In India's booming app-based cab economy, often the only thing that matters for the consumer is not the technology or the car but the most-ignored cog in the wheel: the driver. Whether you step out grinning or groaning from an Ola/Uber ride depends on that crucial factor—how was the driver?Now, the Union ministry of road transport and highways, under Nitin Gadkari, seems to have finally accepted this elementary truth more than ever before. The newly revised Motor Vehicles Aggregator Guidelines 2025, published recently, take into account mental health reviews for drivers as well as how much their work schedules can be stretched, among other things. For an industry defined by long hours, fickle pay and frequent confrontational customers, it can be a game new guidelines, revised from an earlier set in 2020, say drivers will also get better insurance cover: Rs 15 lakh as term insurance and Rs 7.5 lakh for health, a big jump from the earlier Rs 10 lakh and Rs 5 lakh, respectively. It's a long overdue correction for a workforce that hasn't had access to the safety nets available to employees in the more formal bottomline: when drivers are safer, healthier and more secure, they are better able to serve customers; the roads get safer too. This has been underpinned by a growing acceptance within government that it is the people, as opposed to the infrastructure, that shape passengers' experience. That said, the refreshed and forward-looking 2025 regulations are not exactly mandatory. Transport may be on the Concurrent List of the Indian Constitution, but there's precious little the Centre can do to compel a state into legislating on transport matters. So it would be for each state government to either accept or adjust the recommendations. BJP-ruled states will probably fall in line, but others may hesitate, stall or even ignore the changes. It is, therefore, a wishlist with all the good there are several good upgrades in the guidelines as well, such as the way data is to be treated by the aggregators, as per the new Digital Personal Data Protection Act, 2023. Aggregators are now required to keep for a finite time—mininum three months, maximum two years—data generated by the Indian app on Indian servers and in compliance with the Indian data laws. It is part of a shift away from casual data-governance practices that used to be the norm, especially in the gig also a green nudge. Previously, states had the option to offer incentives for electric vehicles purchased within aggregator fleets. The rules now require action: at least 5 per cent of an aggregator's fleet must be electric within the first year of the notice, and that number must double in the second year. It's an aggressive play in a sector that has been slow to see EV adoption, largely because of the erratic charging infrastructure and higher out-of-pocket costs. Also, the demise of BluSmart has been a may finally have some bite. For instance, customers can now know the break-up of fares before booking their rides, ending opaque pricing that often left riders in the dark. If it takes the driver more than five minutes past promised time, riders will have a clear right to cancel the ride without penalty. Also, passengers are meant to be compensated if a driver cancels for no good training and safety protocols are improved as well. The old guidelines addressed gender sensitisation only. But the new ones say drivers have to learn about sexual harassment and how to protect the vulnerable—children and seniors and women. The guidelines stress there should be a clear way to escalate complaints in the the gulf between policy and practice remains wide. Aggregator platforms, known for finding ways to sidestep worker protections in the gig economy in the name of technological neutrality, are likely to slow down on implementing the more stringent rules. And unless state governments have the political will for enforcement, these may well remain on all in all, by making the driver the centerpiece of the ride-hailing equation, the government is signalling a new norm. While it could still be a bumpy ride, a lot of the potholes look set to be filled should the states play to India Today Magazine- EndsTune InMust Watch
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
India ready to sign deals that protect its interests, says Piyush Goyal
India is negotiating trade agreements with countries on its own terms, and 'national interest will always be supreme', Union Minister for Commerce and Industry Piyush Goyal asserted on Friday, even as the country's trade negotiators returned from Washington after extensive nearly week-long parleys with their US counterparts in a bid to seal an interim bilateral trade deal. An official team led by India's chief negotiator, Department of Commerce Special Secretary Rajesh Agrawal, was in the US from June 27, and had extended its stay till Thursday to resolve key issues of contention between the two countries. However, India hasn't signalled the finalisation of an interim deal yet, and the 90-day pause on US' reciprocal tariffs expires on July 9. If an agreement is not firmed up by then, Indian exports to the US could be laden with a 26 per cent duty as per US President Donald Trump's country-specific reciprocal tariff plan unveiled on April 2. India is pushing hard to avoid the reciprocal tariff levies, while securing lower tariffs for labour-intensive sectors such as textiles, leather and automobile components. Washington has signalled that there is unlikely to be any relief on the additional tariffs on steel and aluminium products, a government source said. The US had imposed a 25 per cent import duty on steel and aluminium products in March, which was doubled to 50 per cent in June. 'Negotiations are not contingent on any date… Our interest is that we should get a sustained preference over other competing countries in areas of our interest. If we get that, we will be happy to do a deal,' the official source said. During the latest round of talks, the Indian side is learnt to have hardened its stance on issues related to the 'sensitive' agriculture sector and reiterated, as it had earlier, that agriculture and dairy remain major 'red lines' for India's trade negotiations with the US. Earlier this week, external affairs minister S Jaishankar said: 'There will have to be a give and take. Just like the US or people in the US may have views about India, people in India have views about the US too. We'll have to find a kind of meeting ground. I believe it's possible.' On the other hand, officials from the US administration, including President Trump, have been saying over the past few days that a trade deal with India will be finalised soon.
Time of India
an hour ago
- Time of India
UP to showcase state's investment potential in US, UK and Europe
Lucknow: The Uttar Pradesh govt is all set to roll out an aggressive global outreach to position itself as a strong and reliable alternative for international investors. "Anchored around the 'China+1' strategy, Invest UP is set to conduct high-level roadshows and business roundtables across the US, UK, and Europe to attract companies seeking to diversify their supply chains away from China," said an official spokesperson on Friday. As part of the strategy, business to govt meetings will be held in key global cities, including New York, San Francisco, Los Angeles, London, Paris, Frankfurt, Milan, Amsterdam, and Birmingham. "These events are being organised in collaboration with Indian embassies and leading industry bodies, including the USIBC, CII, and FICCI," the spokeperson said. Officials concerned pointed out that in the US, dialogues will be held with companies such as Google, Amazon Web Services, Microsoft Azure, Oracle, Equinix, Skechers, Mattel, Ralph Lauren, and Coach. In Europe and the UK, efforts will focus on attracting global giants like BMW, Bosch, BASF, Prada, Versace, Lego, Unilever, and GSK. In the context of shifting geopolitical dynamics and evolving global supply chains, Uttar Pradesh is emerging as a viable alternative to nations like Vietnam and Bangladesh. With world-class infrastructure, targeted sectoral incentives, and India's largest consumer base, the state offers an unmatched investment proposition. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Chief secretary Manoj Kumar Singh emphasised that UP is not just inviting investment, but building sustainable, employment-driven value chains. "The state's 33+ sector-specific policies, streamlined approvals, and digital single-window system, Nivesh Mitra, are accelerating investor confidence," he said adding that in 2024–25, UP recorded the highest number of new factory registrations in the country, signalling its growing appeal. These strategic efforts are setting the stage for Uttar Pradesh to emerge as a global manufacturing and innovation hub.
