Nifty set for fresh uptrend, says Motilal Oswal. Here are 4 catalysts, 25 stocks to buy
Motilal Oswal sees the Nifty entering a fresh uptrend after its record high, backed by stronger earnings, supportive policy measures, firm DII inflows and reasonable valuations. The brokerage flags four bullish catalysts, key risks, and highlights 25 stock ideas across largecaps, midcaps and smallcaps in its latest model portfolio.
Synopsis
Motilal Oswal sees the Nifty entering a fresh uptrend after its record high, backed by stronger earnings, supportive policy measures, firm DII inflows and reasonable valuations. The brokerage flags four bullish catalysts, key risks, and highlights 25 stock ideas across largecaps, midcaps and smallcaps in its latest model portfolio.
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Despite a brief consolidation over the past three sessions, the Nifty’s strong three-month run and its breakout to an all-time high of 26,325.80 bode well for the index. Brokerage firm Motilal Oswal (MOFSL) expects a new leg of the uptrend, supported by improving corporate earnings and a boost from fiscal and monetary measures.
The Nifty ended November with a 1.9% uptick on a month-on-month basis, recording its third successive gaining streak while improving its November seasonality, which was evenly split over the last 10 years till 2024.
For CY25, the heartbeat index is up 11% on a YTD basis.
The 50-stock index today fell 0.55% to end at 26,032.20.
Factors favouring bulls
1) Earnings: Its bottom-up aggregate of analyst estimates suggests 15% YoY growth in MOFSL earnings in 2HFY26 after 11% YoY growth in 1HFY26.
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2) Valuations remain reasonable, with Nifty trading at 21.5x, marginally above its LPA of 20.8x, and any evidence of earnings growth pickup should help valuations expand.
3) Better liquidity and stimulative fiscal and monetary measures.
4) Robust DII inflows: Inflows from domestic institutional investors remained strong. In November 2025, they came in at $8.7 billion, taking total CY25 flows to a record $81.3 billion, up from $62.9 billion in CY24, MOFSL noted.
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Triggers for bears
1) MSCI India vs rest: During the last 12 months, the MSCI India Index (+1%) underperformed the MSCI EM Index (+27%) in USD terms.
Over the last 10 years, the MSCI India Index notably outperformed the MSCI EM Index by 68%.
2) Valuations: In P/E terms, the MSCI India Index is trading at a 51% premium to the MSCI EM Index, though below its historical average premium of 78%. Two-thirds of the sectors trade at a premium to their historical averages.
3) FII trends: In November 2025, FIIs recorded muted flows of $0.04 billion, after an inflow of $1.3bn recorded in October 2025. FII equity outflows stood at $16.2 billion in CY25YTD versus outflows of $0.8 billion in CY24.
The markets hope for a resolution in the Indo-US relationships.
Sectors/stocks to watch
In its model portfolio, MOFSL has raised Indian IT services to mild overweight by trimming its position in consumer discretionary and healthcare names. The preferred sectors are diversified financials, IT services, automobiles, telecom, and capital goods, whereas the key underweights are energy, metals, and utilities.
The top ideas include 14 large caps and viz. Bharti Airtel, ICICI Bank, SBI, L&T, M&M, Infosys, Titan Company, Bharat Electronics, Interglobe Aviation, Tata Steel, TVS Motor, Tech Mahindra, Max Healthcare, and Indian Hotels.
In the midcap–smallcap basket, the picks include Swiggy, Dixon Technologies, Suzlon Energy, Jindal Stainless, Coforge, Angel One, Radico Khaitan, Kaynes Technology, Delhivery, V-Mart Retail and VIP Industries.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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(You can now subscribe to our ETMarkets WhatsApp channel)
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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