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Key Highlights

* Nifty extends gains in July; broader markets continue to outperform

* 1QFY27 earnings surpass expectations, led by BFSI and Metals

* Macro resilience and earnings strength reinforce positive outlook for FY27

Indian equities extended their gains in Jul'26, with the Nifty50 rising 2.2% MoM to close at 24,384, crossing the 24,000 mark for the first time in five months. Broader markets continued to outperform, with the Nifty Smallcap 100 gaining 2.5% and the Nifty Midcap 100 advancing 1.8%, supported by better-than-expected earnings and resilient domestic fundamentals.

India's macro backdrop remained supportive during the month. Industrial production (IIP) accelerated to 7.3% YoY in June, led by strong manufacturing and power output, while GST collections rose 15.4% YoY to ?2.11 lakh crore in July, reflecting healthy demand across industrial and capital goods segments.

The RBI maintained the repo rate at 5.25% for 4th consecutive policy meeting while retaining its neutral stance. The central bank marginally raised its FY27 GDP growth forecast to 6.7% and lowered its inflation projection to 5.0%, indicating increasing confidence in India's macro stability.

The southwest monsoon also witnessed a meaningful recovery. July rainfall was 1% above the Long Period Average, reducing the cumulative rainfall deficit from 35% at end-June to 12.6%. While El Niño remains a monitorable, the IMD's forecast of 94% of the Long Period Average for Aug–Sep should help narrow the rainfall deficit further.

The 1QFY27 earnings season has started on a stronger-than-expected note. Among the 211 companies in the MOFSL Universe that had reported results by 31 Jul'26, aggregate earnings grew 2% YoY, significantly ahead of our expectation of a 10% decline. Excluding OMCs, underlying earnings growth remained robust at 17% YoY, led by BFSI (+20% YoY), Metals (+53% YoY), Technology (+11% YoY) and Automobiles (+7% YoY). The 39 Nifty companies that have reported so far delivered 11% YoY earnings growth, comfortably ahead of expectations.

The Nifty50 trades at ~19x one-year forward P/E, 10% below its long-term average, while several heavyweight sectors, including Private Banks, Consumer, Technology and Retail, remain below historical valuation averages.

Looking ahead, resilient macro fundamentals, stronger-than-expected earnings and reasonable valuations, reinforce our positive outlook for FY27. As markets become increasingly earningsdriven, we continue to favour a bottom-up investment approach, with preference for Diversified Financials, Automobiles, Manufacturing & Industrials, Consumer Discretionary and select New-age Technology companies.

Focus Investment Ideas

• “Focus Investment Ideas” highlight our Top Picks for the month.

• The report contains Investment Ideas under both large-cap and midcap space, along with their valuation summary and rationales.

Investment Characteristics

* Balanced Allocation: 45-60% Large Cap for stability and steady growth; 40-55% Mid/small Cap for higher growth potential.

* Universe: Portfolio is curated from our comprehensive Motilal Oswal Institutional coverage of 330+ companies, ensuring only the best ideas make the cut, backed by deep research and conviction.

* Stock Selection: Combining deep fundamental analysis with short-term market insights — including earnings, news, and event-driven triggers.

* Strategic Sector Diversification: Well-diversified across key sectors, aiming to balance risk and capture sector-specific opportunities.

* Concentrated Portfolio: 20 high-conviction stocks, each with 5% allocation to maximize upside while managing risk.

* Monthly rebalancing: Portfolio is reassessed every month to reflect new opportunities, earnings trends & macro shifts.

* Benchmark: Nifty 200 Index

Equity Portfolio Review

What is Equity Portfolio Review?

Equity Portfolio Review is a comprehensive report that analyzes your client’s equity holdings and offers actionable insights. It evaluates each stock, reviews overall portfolio health, and suggests practical steps — whether to buy, hold, reduce, or exit. Think of it as a health check-up for your equity portfolio, backed by robust fundamental and quantitative research.

Why Equity Portfolio Review?

* Markets evolve — and portfolios must too. This review helps you:

* Spot top and underperforming stocks

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* Stay on track with long-term investment goals

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* Enter the client code ? Select ‘Portfolio Review’

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Key Features at Your Fingertips:

* Comprehensive Portfolio Analysis – Investment, P&L, allocation by stock, sector, and market cap

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Pay Later (MTF)

What is Pay Later (MTF)?

Pay Later (MTF) is a facility that allows you to invest in stocks by paying only a fraction of the total amount upfront. The remaining amount is funded by us. The stocks stay in your demat account (pledged), and you can continue to hold them by paying interest on the funded amount.

Why Use Pay Later (MTF)?

* 4X Buying Power E.g., Invest Rs 4 lakh with just Rs 1 lakh

* Hold Beyond T+1 No square-off pressure like intraday trades

* Increase market exposure using the same capital

* Stocks Stay in Your Demat Account

/* Access to a larger pool of 1000+ Stocks

See Pay Later (MTF) in Action:

Let’s say you have Rs 1,00,000 and want to invest in ABC stock

* With Pay Later (MTF), you can buy up to Rs 4,00,000 worth of ABC shares

* You pay Rs 1,00,000, and we fund the rest of Rs 3,00,000

* You pay interest only on the funded Rs 3,00,000

* You can hold the shares for 365+ days by maintaining minimum margin

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