Bullish Outlook: Motilal Oswal Sees Strong FY27 for Nifty; SBI, INFY Key Picks

Motilal Oswal predicts a significantly better FY27 for Indian equities, contrasting with the underperformance of FY26. This positive outlook is based on the anticipated delayed effects of fiscal and monetary stimulus, more attractive valuations, and a favorable base effect.

This analysis provides a forward-looking perspective from a prominent brokerage, influencing investor sentiment and capital allocation for the upcoming fiscal year. It suggests a potential shift in market dynamics from global headwinds to domestic tailwinds, which is crucial for long-term portfolio planning.

The identified key stock picks like BHARTIARTL, SBIN, ICICIBANK, M&M, TITAN, and INFY are likely to see increased investor interest. The banking and IT sectors, in particular, could benefit from renewed FII inflows and improved domestic earnings, potentially leading to upward price momentum for these specific stocks.

Traders should monitor FII flow data and the actual implementation and impact of fiscal and monetary policies. Watch for Q1 FY27 earnings reports for early signs of the predicted earnings improvement and observe if the broader market indices like Nifty and Sensex confirm this bullish sentiment with sustained upward trends.

• •Indian equities underperformed in FY26 due to global headwinds, FII outflows, and limited exposure to the AI boom.
• •Motilal Oswal expects FY27 to benefit from delayed effects of fiscal and monetary stimulus, narrower valuations, and a favorable base.
• •Key stock picks for FY27 include Bharti Airtel, SBI, ICICI Bank, M&M, Titan, and Infosys.