BEL, Coforge, SBI, Tata Steel, Infosys, Waaree Energies, Dixon: MOFSL's top stock picks

MOFSL in its latest edition of monthly report 'Bulls & Bear' said it prefers Bharti Airtel Ltd, State Bank of India (SBI), ICICI Bank Ltd, Mahindra & Mahindra (M&M), Titan Company Ltd and Bharat Electronics Ltd (BEL) among Nifty50 stocks. It also likes Eternal Ltd, Tata Steel, Infosys, and InterGlobe Aviation from the Nifty50 pack.

The domestic brokerage's non-Nifty-50 ideas include TVS Motor, ICICI Prudential AMC, Billionbrains Garage Ventures (Groww), Indian Hotels, AU Small Finance, Dixon Technologies, among others. It also likes Lenskart, Waaree Energies, Coforge, Radico Khaitan, and Delhivery.

"Our model portfolio broadly reflects our preference for growth visibility, structural domestic growth plays, and select global value names. We firmly believe that this is a bottom-up market, despite India witnessing both time and price corrections relative to EM peers," MOFSL said.

MOFSL said it is overweight on sectors such as automobile, PSU banks, diversified financials, manufacturing & industrials, consumer discretionary, and new-age platforms. On the flip side, it is underweight on oil & gas, private banks, metals, consumer staples, IT, and utilities. The domestic brokerge noted that Nifty is trading at a 12-month forward PE ratio of 19.1 times, below its long-term average of 21 times, a 9 per cent discount.

The domestic brokerage said Nifty's price to book value of 2.8 times represents a 3 per cent discount to its historical average of 2.9 times.

"Following India’s sharp underperformance in FY26 and record FII outflows, a favorable base has likely been set for Indian equities," it said.

While the duration of the ongoing Iran-Israel war remains the key overhang, a resolution to the conflict is expected to release pent-up positive sentiment and help Indian markets recoup some of the losses and underperformance experienced in FY26, MOFSL said.

"While the ongoing war has hit the current earnings estimates, the effect has not been as sharp as observed in FY25. Moreover, the plethora of policy measures should incrementally prop up earnings growth. Currently, we estimate 16 per cent earnings CAGR for both the MOFSL Universe and the Nifty over FY26-28," MOFSL said.