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For the JM Financial universe, we forecast PAT growth of 12.3% YoY in 3QFY26E. Ex-BFSI, we reckon growth would be 17.8% YoY. Furthermore, we expect Nifty 3QFY26E PAT to grow 9.8% YoY (ex-BFSI growth expected to be 16.2% YoY). After delivering 9.5% growth in 1Q and 8.4% in 2Q, Nifty50 would deliver YoY PAT growth of 9.8% in 3Q in our view, driven by: i) IT Services (12% weight in Nifty50 earnings), likely to increase 10% YoY; ii) Auto (6% weight in Nifty50 earnings), to accelerate 33% YoY; iii) Metals & Mining (5% weight in Nifty50 earnings), to rise 25% YoY; iv) Telecom (3% weight in Nifty50 earnings), to surge 64% YoY; and v) Industrials (4% weight in Nifty50 earnings), expected to jump 31% YoY.

Bullish on consumption: The Government of India and the RBI have taken steps to boost consumption through income tax cuts, interest rate cuts, an increase in banking system liquidity and GST rate reduction. Taking cognisance of this, we rejigged our model portfolio and increased our overweight on: i) consumer; ii) internet; iii) auto; and iv) hotels & real estate.

Domestic flows positive in 3QFY26, but FIIs continue to be net sellers: In 3QFY26, DIIs were net buyers of Indian equities to the tune of USD 23.6bn, whereas FIIs offloaded Indian equities worth USD 1.3bn—attributable to a large quantum of selling in Dec’25. YTFY26 too, the trend remains similar with DIIs being large buyers (USD 68.5bn) and FIIs net sellers (USD 6.2bn). While FIIs were net buyers in 1QFY26 to the tune of USD 4.6bn, they were net sellers in 2Q and 3Q to the tune of USD 10.8bn. DIIs have remained net buyers in each month of FY26 so far.

JM Financial universe 3QFY26E PAT growth of 12.3% YoY: For the JM Financial universe, we forecast PAT growth of 12.3% YoY in 3QFY26E. Sectors driving this are: i) Oil & Gas (16% weight in earnings), expected to rise 13% YoY; ii) IT Services (11% weight in earnings), expected to rise 11% YoY; iii) Auto (6% weight in earnings) expected to rise 33% YoY; iv) Metals & Mining (4% weight in earnings), expected to rise 71% YoY; and v) Industrials (3% weight in earnings), expected to rise 26% YoY. Ex-BFSI, the JM Financial universe is expected to register 17.8% YoY growth in 3QFY26E PAT. Ex-BFSI and Oil & Gas, this should rise 19.3% YoY.

3QFY26E Nifty50 PAT to grow 9.8% YoY: We expect Nifty 3QFY26E PAT to grow 9.8% YoY, led by: i) IT Services (12% weight in Nifty50 earnings), likely to increase 10% YoY; ii) Auto (6% weight in Nifty50 earnings), to accelerate 33% YoY; iii) Metals & Mining (5% weight in Nifty50 earnings), to rise 25% YoY; iv) Telecom (3% weight in Nifty50 earnings), to surge 64% YoY; and v) Industrials (4% weight in Nifty50 earnings), expected to jump 31% YoY. Ex-BFSI, we reckon 3QFY26E Nifty PAT shall rise 16.2% YoY. Ex-BFSI and oil & gas, we expect Nifty50 PAT to grow 20.5% YoY.

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