From SBI, BEL to TVS Motor: Motilal Oswal’s top 21 stock ideas across Nifty-50 and Non-Nifty picks

According to the brokerage report, corporate earnings for the Q4FY26 were stronger than expected, with sectors such as Banking, Financial Services and Insurance (BFSI), metals, oil marketing companies, technology, telecom and automobiles driving overall profit growth. 

The brokerage house, in its latest report has highlighted 10 Nifty-50 stocks and 11 non-Nifty names as its key investment ideas. Let’s take a look –

Motilal Oswal’s top Nifty-50 stock picks

The brokerage house has retained a positive view on select large-cap companies across sectors including telecom, banking, automobiles, defence, technology and aviation.

Top Nifty-50 Ideas

Beyond the Nifty: 11 broader market ideas

Motilal Oswal has also identified a list of non-Nifty companies spanning financial services, hospitality, manufacturing, technology, renewable energy and consumer sectors.

Top Non-Nifty-50 Ideas

Earnings season ends with a positive surprise

Motilal Oswal in its report added that the earnings performance of companies under its coverage universe exceeded expectations during the quarter.

 “The aggregate earnings of the Motilal Oswal universe companies grew 16% YoY (vs. our est. of 8% YoY) in Q4FY26,” the report said.

The brokerage noted that banking and financial companies played a major role in supporting profits. Metals and oil marketing companies also delivered stronger-than-expected earnings, while technology, telecom and automobile companies contributed positively.

However, not all sectors performed equally. According to the brokerage report, oil and gas companies, excluding oil marketing firms, remained a drag on overall profitability.

Nifty earnings growth remains modest

While quarterly earnings came in ahead of estimates, the broader picture remains more measured. According to the brokerage report, “The Nifty delivered a 4% YoY PAT growth (vs. our est. of +2%).”

Profit after tax (PAT) growth for the benchmark index remained in single digits for the eighth consecutive quarter, a trend not seen since the pandemic period. 

The brokerage further highlighted that a handful of companies accounted for a large share of earnings growth, while some heavyweight stocks weighed on overall performance.

“Nifty EPS for FY26 ended at Rs 1,065 (+5% YoY), a second consecutive year of single-digit growth,” added Motilal Oswal report.

What is driving the brokerage’s outlook?

As per Motilal Oswal report, the focus remains on sectors where earnings growth is expected to remain relatively strong in FY26-27.

“The Motilal Oswal Universe is likely to deliver sales/EBITDA/PAT growth of 10%/10%/10% YoY in FY27,” the report said.

The brokerage expects financials, metals, telecom and technology to be the biggest contributors to earnings growth over the coming year.

 “The Financials, Metals, Telecom, and Technology sectors are projected to be the key growth engines,” the report noted.

At the same time, earnings revisions continue to remain under pressure. “MOFSL PAT records a downgrade of 1.2% for FY27,” the report highlighted, indicating that earnings expectations have been reduced for several companies.

Market outlook: Opportunities and risks

The brokerage added that the stronger-than-expected March quarter earnings have provided some support to market sentiment. However, investors should continue monitoring global developments, particularly geopolitical tensions in West Asia and their impact on commodity prices.

“The market will remain hostage to volatile developments arising from the West Asian crisis,” the report cautioned.

The brokerage believes stock selection will remain critical in the current environment. “We firmly believe that this is a bottom-up market,” it said.

For now, Motilal Oswal’s preferred list spans a mix of established large-cap names such as State Bank of India, ICICI Bank and Bharat Electronics, along with broader market plays including TVS Motor, Waaree Energies, Coforge and Delhivery, suggesting its focus on earnings visibility and sector-specific opportunities in FY27.

Disclaimer: The stock ideas and investment themes discussed represent the institutional views and research parameters of Motilal Oswal, and should not be construed as direct buy, sell, or hold recommendations for individual portfolios. Readers are advised that equity investments are subject to market risks, and specific corporate performance or brokerage targets may change based on macroeconomic factors. Prior to making any financial decisions, please consult a SEBI-registered investment advisor or qualified financial professional. This disclaimer has been generated using AI to support user well-being and responsible content consumption.