Will FY27 be better than 'black swan' FY26 for markets? Here's what Motilal Oswal says

The banking sector, despite recent dips (as per online context [4], [5]), is poised for potential recovery in FY27, driven by broader market optimism and specific stock picks like SBI and ICICI Bank.

Look for entry points in fundamentally strong banking stocks, particularly those with improving asset quality and credit growth prospects, on any market corrections.

For Indian markets, this story mainly matters for BHARTIARTL, SBIN, ICICIBANK and the Financials, Telecommunications, Automobiles pocket. The current signal is bullish, so traders should look for follow-through in price, volume, and sector breadth instead of reacting to the headline alone.

Watch whether the next market session confirms the setup described here: Identified as a key stock pick by Motilal Oswal for FY27. Identified as a key stock pick by Motilal Oswal for FY27. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •Indian equities underperformed in FY26 due to global headwinds, FII outflows, and limited AI exposure.
• •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.
• •Risk flag: Continued FII outflows could dampen sentiment.
• •Risk flag: Global economic slowdown impacting export-oriented sectors.