rewrite this title and make it good for SEOMotilal Oswal distinctly biased towards largecaps; shares 9 top largecap and 11 mid, smallcap picks

Motilal Oswal Top Stock Ideas: In its monthly snapshot, domestic brokerage Motilal Oswal Financial Services (MOFSL) noted that the bluechip Nifty index ended higher for the fourth successive month in Jun’25—logging gains of over 3 per cent month-on-month to close above 25k for the first time since Sep’24 (at 25,517). On a year-to-date basis, the Nifty is up 7.9 per cent, the report added.

As we write, the Nifty50 is hovering close to the 25,500 level. Furthermore, over the last 12 months, largecaps and midcaps have gained 6 per cent and 7 per cent, respectively, outperforming smallcaps, which have risen 4 per cent. Over the last five years, midcaps (CAGR: 32.4%) have significantly outperformed largecaps (CAGR: 19.9%) by 158 per cent, while smallcaps (CAGR: 32.8%) have markedly outperformed largecaps by 165 per cent, the report highlighted.

FII inflows sustained for fourth month in a row

FIIs were net buyers for the fourth consecutive month, investing USD 2.4 billion in Jun’25. DIIs also showed healthy inflows, amounting to USD 8.5 billion in Jun’25. FII outflows from Indian equities have reached USD 8.2 billion in CY25YTD, compared to outflows of USD 0.8 billion in CY24.

Profit-to-GDP ratio firm at 17-year high of 4.7%

In 2025, the corporate profit-to-GDP ratio for the Nifty-500 universe remained at 4.7 per cent, marking a 17-year high. Notably, for listed India Inc., the ratio stood at 5.1 per cent, a 14-year high. The sustained profit-to-GDP ratio for the Nifty-500 was positively influenced by sectors like telecom, PSU banks, healthcare, consumer, and infrastructure.

Market outlook

The brokerage noted that even though geopolitical tensions persist and global growth slows, India’s macroeconomic outlook presents a contrasting picture. India’s nominal GDP grew 9.8 per cent in FY25, surpassing market expectations, and is projected to accelerate further to 10.8 per cent in FY26.

Although corporate profit growth moderated in FY25 due to a high base in FY24, a slowdown in government spending during 1HFY25 amid elections, weak consumption, and volatile exports driven by global uncertainties, the brokerage expects a gradual recovery ahead.

Also, the Nifty index has rebounded notably over the last three months, completely reversing its YTD decline. Currently, the Nifty is trading 7.9 per cent higher in CY25YTD. With this rally, the Nifty trades at 22.5x FY26E earnings, near its LPA of 20.7x.

The brokerage has a distinct bias towards largecaps and domestic plays, given the current volatile backdrop. It is overweight on BFSI, Consumer Discretionary, Industrials, Healthcare, IT, and Telecom, while underweight on Oil & Gas, Cement, Automobiles, Real Estate, and Metals.

Largecap, midcap and smallcap ideas

The brokerage has listed stocks such as Bharti Airtel, ICICI Bank, L&T, Kotak Mahindra Bank, Titan, M&M, Trent, Tech Mahindra, and RIL as its top picks within the largecap basket.

Midcap and smallcap picks by the brokerage include Indian Hotels, HDFC AMC, BSE, Suzlon Energy, Dixon Tech., SRF, Jindal Stainless, Coforge, Page Industries, Kaynes Tech, and LT Foods.