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Motilal Oswal Picks Top 5 Stocks for 2026 Gains
3 Jan
Summary
- Experts predict strong Indian market rebound in 2026.
- Top stock picks include SBI for lending growth and BEL for defence.
- Motilal Oswal sees reasonable valuations with potential for expansion.
Indian equities are poised for a strong resurgence in 2026, according to Motilal Oswal's experts. Following a year of underperformance in 2025, the domestic market is expected to benefit from better earnings prospects and supportive macroeconomic conditions. The brokerage firm maintains a positive outlook, anticipating a retracement of the previous year's underperformance.
Motilal Oswal highlights specific companies like SBI, noting its robust lending growth and potential for improved return ratios, projecting FY27E RoA/RoE at 1.1%/15.5%. Bharat Electronics Limited (BEL) is also favored due to its strong position in defence contracts, including radar systems and drone detection, with expected sales/EBITDA/PAT CAGR of 18%/17%/17% over FY25-28.
Further analysis indicates reasonable market valuations, with the Nifty trading near its long-term average. Motilal Oswal is optimistic about sustained growth across various sectors, citing strong credit growth, a healthy product launch pipeline, and alignment with global consumption trends as key drivers for future returns. This positive outlook supports potential valuation expansion.
