Motilal Oswal obviously tends toward large batches; shares 9 top-tier racing cars and 11 small and medium-sized stock picks
Motilal Oswal Top Stock Creativity: In its monthly snapshot, domestic broker Motilal Oswal Financial Services (MOFSL) pointed out that the blue Nifty index was higher for the fourth consecutive month in June 25, the first time since sep’24 (25,517) that exceeded 3% of months in more than 25k. The report added that Nifty has risen 7.9% year-to-date.
When we wrote, the Nifty50 hovered at level 25,500. In addition, over the past 12 months, the growth of large volumes and medium caps was 6% and 7%, respectively, outperforming the 4% small stocks. Over the past five years, mid-cap stocks (CAGR: 32.4%) have significantly outperformed the large number of 158% of the larger (CAGR: 19.9%), while small-cap stocks (CAGR: 32.8%) have significantly outperformed 165%, reporting highs.
FII lasts for the fourth consecutive month
FII became a net buyer for the fourth straight month, investing $2.4 billion on June 25. DII also showed a healthy inflow, at $8.5 billion on June 25. FII outflows from Indian stocks reached $8.2 billion in CY25YTD, while CY24 outflows were $800 million.
Profit-to-GDP ratio companies are 4.7% higher in 17 years
In 2025, the Nifty-500 Universe’s corporate profit-to-GDP ratio remained at 4.7%, marking a 17-year high. It is worth noting that for listed Indian companies, the ratio is 5.1%, which is 14 years higher. The NIFTY-500’s continued profit-to-GDP ratio is positively affected by sectors such as Telecom, PSU Banking, Healthcare, Consumer and Infrastructure.
Market prospects
The broker pointed out that even though geopolitical tensions persisted, global growth slowed down and India’s macroeconomic outlook showed a contrast. India’s nominal GDP grew by 9.8% in fiscal 25, surpassing market expectations and is expected to accelerate further to 10.8% in fiscal 26.
Although the company’s profit growth was regulated in FY25 due to a higher foundation in FY24, the broker is expected to recover gradually due to elections driven by global uncertainty, weak consumption and a slowdown in government spending during 1HFY25.
Similarly, over the past three months, the beautiful index has rebounded, completely reversing its YTD decline. Currently, Nifty trades in CY25YTD 7.9% higher. With this rally, Nifty traded at 22.5 times and its revenue was 20.7 times.
Given the current volatile background, the broker has obvious bias against large archipelago and domestic drama. It is overweight to BFSI, consumer discretion, industrial, healthcare, IT and telecommunications, while underweight to oil and gas, cement, automobiles, real estate and metals.
Largecap, ideas for Chinese stocks and small hats
The brokerage has listed stocks such as Bharti Airtel, ICICI Bank, L&T, Kotak Mahindra Bank, Titan, M&M, Trent, Tech Mahindra and Ril as the top choice in the LargeCap basket.
Mid-cap and small-cap stocks of brokers include Hotel India, HDFC AMC, BSE, Suzlon Energy, Dixon Tech. , SRF, Jindal Stainless, Coforge, Coforge, Page Industries, Kaynes Tech and LT Foods.
