In its latest strategy note, Motilal Oswal Financial Services (MOFSL) laid out a curated list of top stock picks spanning both large-cap and mid-cap segments, reflecting a generally positive outlook on Indian equities as markets look to recover from 2025’s underperformance backed by improving earnings prospects and supportive macro conditions. Among the large-cap favourites, the brokerage includes InterGlobe Aviation (IndiGo) for its dominant position in domestic aviation, Bharat Electronics (BEL) for defence electronics strength, along with stalwarts like Bharti Airtel, SBI, Infosys, L&T, Mahindra & Mahindra, TVS Motors, Tech Mahindra and Indian Hotels that anchor diversified sector exposure.

On the mid-cap front, MOFSL likes Dixon Technologies for its role in electronics manufacturing services, Suzlon Energy for renewed wind energy demand and improving fundamentals, and Kaynes Technology India for its presence in electronics and semiconductors. It also highlights names such as Swiggy, Jindal Stainless, Coforge, Radico Khaitan, V-Mart and VIP Industries as interesting mid-cap plays.

MOFSL’s optimism is underpinned by valuations that remain reasonable, with the Nifty trading near long-term averages and earnings expected to grow in the mid-teens over FY26–27. The brokerage also emphasises that a rotation of foreign institutional investor flows back to India — amid global market shifts — could support equity inflows. Its preferred overweight sectors include diversified financials, automobiles, capital goods, IT services and telecom, while it remains relatively cautious on energy, metals, utilities and staples.