14 Stock Ideas From Motilal Oswal

Motilal Oswal, in its research note, has suggested top stock ideas which investors can buy for the long term. The stock-broking firm highlighted that the markets have performed well and going forward, would show growth due to strong, conducive support from FIIs and is optimistic.

As per the research report, last month, the Nifty gained 2.6% MoM to 18,534, closing higher for the third consecutive month. The Nifty is up 2.4% in CY23YTD. The benchmark is now 1.9% away from its all-time high of 18,888 recorded in Dec'22. The Nifty Midcap 100 (+6.2% MoM) and the Nifty Smallcap100 (+5.1%) outperformed the Nifty-50 during the month.

Further, it was seen that FIIs remained net buyers for the third straight month at USD 5 billion in May 2023 (highest since Sep 2022); YTD inflows stood at USD 4.4 billion. DIIs turned net sellers in May'23 at USD 0.4 billion, with YTD inflows at USD 10 billion.

In the note, it was reported that Automobiles (+8%), Real Estate (+8%), Consumer (+7%), Technology (+6%), and Telecom (+4%) were the top sectors to gain in May 2023, while PSU Banks (-3%) was the only laggard.

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As per Motilal Oswal, the Nifty ended FY23 with 11% EPS growth on a high base of 34% growth in FY22. Earnings, though, remained lopsided, with BFSI driving almost entire incremental earnings in FY23.

It further stated that, with healthy macros, rangebound oil prices, a robust fiscal balance sheet, and moderating inflation, the outlook for the market looks optimistic.

In contrast to the market consensus of 5% growth and our forecast of 5.3% growth, India's real GDP growth surprised with a 6.1% print in 4QFY23. As a result, FY23 growth came in at 7.2%, beating the consensus of 7%. On the expenditure side, investments and external trade provided a cushion to real GDP growth.

"However, weak consumption growth and lower savings are worrisome. We maintain our Overweight stance on Financials, Capex, Autos, and Consumption. In our model portfolio, we are Neutral on IT and Healthcare and Underweight on Metals, Energy, and Utilities", the broking firm added.

Top Stock Ideas:

Large-caps - ICICI Bank, ITC, L&T, M&M, HCL Tech, Ultratech and ONGC
Mid-caps and small-caps - Ashok Leyland, Vedant Fashion, Metro Brands, MMFS, APL Apollo, Godrej Properties, and Lemon Tree

Disclaimer

The stocks have been picked up from the brokerage report of Motilal Oswal. Greynium Information Technologies, the author or the brokerage firm will not be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.