Motilal Oswal Financial Services (MOFSL) has identified 40 stocks to buy during the September 2026 quarter, expecting aggregate profit after tax across its coverage universe to grow 22% year-on-year. The brokerage highlighted that excluding oil marketing companies, earnings are projected to rise 24%, while Nifty-50 earnings are expected to increase 27%, marking the highest growth in 11 quarters, according to livemint.com.
The brokerage attributed the positive outlook to a sharp valuation correction in Indian equities, with large- and mid-cap stocks experiencing valuation declines of 31% and 36%, respectively, from their peaks in 2024. MOFSL emphasized that stock selection will be crucial as market performance increasingly depends on individual companies’ earnings trajectories amid global uncertainties. The firm identified opportunities across sectors including banking, financial services, technology, manufacturing, automobiles, consumption, and healthcare.
MOFSL’s model portfolio includes established companies such as ICICI Bank, HDFC Bank, State Bank of India, Infosys, Larsen & Toubro, Bharat Electronics, Titan Company, Reliance Industries, Bharti Airtel, and Apollo Hospitals. It also features newer and mid-cap opportunities like Meesho and Physic. The brokerage believes India’s ongoing market consolidation and earnings recovery from fiscal year 2025 lows have contributed to a sustained cooling in valuations, making equities more attractive.
The September 2026 quarter is expected to deliver the highest earnings growth in nearly three years, with MOFSL’s forecast underscoring a 27% rise in Nifty-50 earnings. This growth projection sets the stage for investors to focus on select stocks within the identified sectors as companies report their quarterly results, according to livemint.com.