7 Top Largecap & 6 Top Midcap Investment Ideas From Motilal Oswal

Nifty, after a weak run in the last four months, bounced back in Apr'23 with 4.1% MoM gain. According to Motilal Oswal, notably, the index was extremely volatile and swung around 776 points before closing 705 points higher and reclaiming 18k levels. Major sectors ended higher - Real Estate (+15%), PSU Banks (+12%), Automobiles (+8%), Capital Goods (+7%), and Telecom (+7%) were the top gainers, while Technology (-3%) was the only laggard. India was among the top-performing markets in Apr'23. however, it has been underperforming the emerging markets and the world indices in CY23YTD amid varied global macro headwinds viz., inflation, interest rates, and currency. While most of the global equity markets are rising 5-20% in CY23YTD, India is flat (in local currency).

"Despite global concerns, the domestic market structure remains positive on the back of healthy macro data, strong earnings, and recent FIIs buying. Even valuations are providing comfort. Thus investors are recommended to buy on dips as growth at reasonable valuations will continue to be the theme to generate returns in FY24," Motilal Oswal has said in its report.

Here are 7 largecap stocks and 6 from the midcap space, which have a buy from the brokerage firm.

According to Motilal Oswal, after a flat FY23, Nifty now trades at 18x one-year forward P/E (8% discount to LPA of 19.9x), which is a decent drop from the level of 21x seen at the beginning of FY23. Sectors that began the year at elevated valuations - IT, Consumer, and select Private Financials - have seen moderation in the valuation multiples during the year.

Disclaimer

The above article is sourced from the brokerage report of Motilal Oswal. Neither the author, nor Greynium Information Technologies Pvt Ltd should be held responsible for losses based on a decision after reading the article. We have not done any analysis and are just providing information from the report of Motilal Oswal. Goodreturns.in advises users to consult with certified experts before making any investment decision.