The frequent thread is that buyers are being requested to give attention to corporations with earnings visibility, balance-sheet power and sector tailwinds after a better-than-expected Q1FY27 earnings season.
Motilal Oswal mentioned the primary quarter company earnings season ended on a robust notice, with 19 sectors beating its expectations. The brokerage mentioned earnings progress was led by financials, metals, oil and fuel excluding oil advertising corporations, cars, chemical substances, textiles and actual property. Oil advertising corporations had been the principle drag on the general numbers.
For its protection universe excluding OMCs, gross sales rose 18%, EBITDA grew 15% and revenue after tax elevated 22% year-on-year, forward of its estimates of 15%, 10% and 15%, respectively. It mentioned the expansion was helped by BFSI, metals, oil and fuel, expertise and telecom.
The Nifty additionally delivered a robust quarter. Nifty revenue after tax grew 18% year-on-year, in contrast with its estimate of 10%, marking a 10-quarter excessive. ONGC, Hindalco, Reliance Industries, JSW Metal and Bharti Airtel contributed 60% of the incremental year-on-year earnings progress.
The brokerage’s most popular Nifty 50 concepts after Q1 results embrace Bharti Airtel, ICICI Bank, SBI, Titan Firm, Mahindra and Mahindra, Bharat Electronics, Everlasting, Hindalco, Shriram Finance, InterGlobe Aviation and Apollo Hospitals.
Outdoors the Nifty, the brokerage has picked TVS Motor, BSE, GE Vernova T&D, HDFC AMC, Lenskart Options, Indian Lodges, Meesho, Dixon Applied sciences, Coforge, Radico Khaitan, Delhivery, Kirloskar Oil Engines, RBL Financial institution, TBO Tek and Arvind.The choice exhibits a mixture of previous financial system and new financial system names. Autos, banks, defence, hospitals and telecom sit alongside platform companies equivalent to Everlasting, Meesho, Lenskart, Delhivery and TBO Tek. The inclusion of BSE and HDFC AMC additionally displays the persevering with curiosity in financialisation-linked companies.
Additionally Learn: Nifty to hit 50,000 before 2035? Raamdeo Agrawal maps 3 valuation-based timelines
Axis Securities has taken an analogous view in the marketplace backdrop, saying India confirmed resilience within the first half of CY2026 regardless of West Asia tensions, Brent crude transferring above $100 a barrel and international portfolio investor outflows of Rs 2.25 lakh crore thus far within the yr.
The brokerage mentioned month-to-month SIP flows remained above Rs 31,000 crore, with June inflows at Rs 31,115 crore, giving the market a gradual home liquidity cushion throughout heavy FII promoting. It additionally pointed to a rural-led consumption restoration, with rural demand rising 8.4% year-on-year towards 4.6% progress in city markets.
“As we enter H2, we consider the market is steadily transitioning from a macro-driven section in the direction of a extra fundamentally-led, earnings-driven cycle,” Axis Securities mentioned.
Axis expects the Nifty to succeed in 27,200 by December 2026 in its base case, assuming a 19.5 occasions price-to-earnings a number of. Its bull case goal is 28,615, whereas its bear case stage is 23,030. The brokerage mentioned the market now requires a disciplined “purchase on dips” method, with give attention to high quality companies, sturdy steadiness sheets and earnings visibility.
Axis stays constructive on financials, defence, capital items, energy and utilities, telecom, auto and healthcare. It’s selective on IT providers due to dependence on international discretionary spending, and cautious on FMCG and paints because of crude-linked uncooked materials value pressures.
Its high concepts embrace Navin Fluorine with a goal worth of Rs 8,600, VA Tech Wabag with a goal worth of Rs 2,105, Jubilant Ingrevia with a goal worth of Rs 835, Mold-Tek Packaging with a goal worth of Rs 850 and Aarti Industries with a goal worth of Rs 560.
In banking, Axis has a purchase name on Kotak Mahindra Bank with a goal worth of Rs 500 and ICICI Financial institution with a goal worth of Rs 1,700. Amongst PSU banks, it has picked State Financial institution of India with a goal worth of Rs 1,285. In mid-sized and small banks, it recommends Federal Financial institution with a goal of Rs 340 and Ujjivan Small Finance Financial institution with a goal of Rs 78.
In NBFCs, Axis has purchase calls on Bajaj Finance with a goal worth of Rs 1,160, Shriram Finance with a goal worth of Rs 1,200 and CreditAccess Grameen with a goal worth of Rs 1,850. It has additionally named APL Apollo Tubes with a goal worth of Rs 2,250 and Hindalco Industries with a goal worth of Rs 1,155 as high conviction concepts.
(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Instances)
