What Happened
Motilal Oswal has released a list of 40 stocks to buy ahead of the Q2 earnings season, including major players like RIL, ICICI Bank, and Infosys. The brokerage anticipates a robust 22% earnings growth across its coverage universe, suggesting a positive outlook for corporate performance in the September 2026 quarter.
Why It Matters (for you)
This recommendation comes after a period of valuation declines, indicating that Motilal Oswal perceives an improved risk-reward profile for Indian equities. Such a strong endorsement from a prominent brokerage can influence investor sentiment and potentially drive capital allocation towards the identified stocks and sectors, setting the tone for the upcoming earnings season.
Impact on Indian Markets
The named stocks like RELIANCE, ICICIBANK, and INFY are likely to see increased buying interest, potentially leading to price appreciation. The broader banking sector (ICICIBANK, HDFCBANK) and IT sector (INFY, TCS) could also benefit from this positive sentiment. Other stocks from the unlisted 40, particularly those in the model portfolio, may also experience upward momentum.
What Traders Should Watch Next
Traders should closely track the actual Q2 earnings announcements of these recommended companies against Motilal Oswal's expectations. Any significant beats or misses could lead to sharp price movements. Additionally, monitor the overall market reaction to these recommendations and the broader Nifty/Sensex performance for confirmation of the bullish sentiment.
Key Evidence
- Motilal Oswal recommends 40 stocks to buy during Q2 earnings season.
- Brokerage expects 22% earnings growth across its coverage universe for September 2026-quarter.
- Motilal Oswal sees an improved risk-reward profile for Indian equities after steep valuation declines.
- RIL, ICICI Bank, and Infosys are specifically named among the recommendations.
- 26 stocks are part of Motilal Oswal's model portfolio.