As Indian stock markets gear up for 2026 following a year characterized by consolidation, Motilal Oswal Financial Services (MOSL) has released its list of top stock picks for long-term investment. The brokerage firm anticipates that the coming year will be marked by earnings recovery and consistent growth, rather than dramatic rallies. Despite global trade uncertainties and muted earnings momentum, the Nifty 50 ended 2025 with gains of nearly 10%, and MOSL expects corporate earnings growth to rebound to 9% in FY26, further improving to approximately 15% in FY27 and FY28. This optimistic outlook is supported by domestic policy stability, anticipated RBI rate cuts, and a revival in private capital expenditure.
Against this backdrop, MOSL has identified ten high-conviction stock ideas for 2026, each selected for its clear earnings visibility and comfortable valuation. While various sources mention differing specific stocks and target prices, some consistent recommendations emerge.
Bharti Airtel: MOSL remains positive on Bharti Airtel, citing consistent operational outperformance and multi-year earnings visibility driven by 5G rollout, broadband expansion, and digital infrastructure growth. They expect consolidated revenue and EBITDA to grow at a CAGR of 15% and 18%, respectively, over FY25–FY28. The brokerage highlights the company's strong execution across mobility and digital infrastructure, aided by premiumization, ARPU expansion, and steady broadband growth. Moderated capital expenditure and operating efficiencies are also contributing to stronger free cash flow generation, even with continued investments in 5G and digital platforms. MOSL has set a target price of ₹2,365 for Bharti Airtel. Other sources also indicate a positive outlook, with one analyst firm setting a target price of Rs 2,525.
State Bank of India (SBI): SBI remains a preferred large-cap banking pick for MOSL, supported by its diversified franchise, strong balance sheet, and improving asset quality. The brokerage expects a healthy credit growth of around 13% year-on-year, with management guiding for 12–14% loan growth and Net Interest Margins (NIMs) above 3%. Structural initiatives like Project Saral and a corporate credit pipeline of nearly ₹7 lakh crore provide additional comfort. MOSL forecasts a Return on Assets (RoA) of around 1.1% and a Return on Equity (RoE) of around 15.5% for FY27, supporting a target price of ₹1,100. Other analysis also suggests a positive long-term outlook for SBI, citing strong fundamentals, digital growth, and consistent profitability.
Additional Stock Picks: Besides Bharti Airtel and SBI, Motilal Oswal's list includes other prominent names across various sectors. These include companies like ITC, Tata Steel, Infosys, HCL Technologies, TVS Motor Company, Max Financial Services, Biocon, and JK Cement.
MOSL is positive on themes like financial services, consumption, manufacturing, and digital & healthcare, considering factors like strong asset quality, rising retail participation, demand recovery, easing inflation, structural shifts, rising infrastructure spending, PLI schemes, robust order books, strategic digital adoption, and improving domestic health infrastructure.
Market Outlook: Motilal Oswal believes that improvement in corporate earnings, supportive domestic policies, and a revival in private sector investments are likely to drive market performance through the year. The brokerage notes that while large-cap valuations appear reasonable after recent consolidation, a more selective approach is warranted for mid-cap and small-cap stocks due to elevated valuations.
