Motilal Oswal Prime Inventory Concepts: In its month-to-month snapshot, home brokerage Motilal Oswal Monetary Providers (MOFSL) famous that the bluechip Nifty index ended greater for the fourth successive month in Jun’25—logging positive aspects of over 3 per cent month-on-month to shut above 25k for the primary time since Sep’24 (at 25,517). On a year-to-date foundation, the Nifty is up 7.9 per cent, the report added.
As we write, the Nifty50 is hovering near the 25,500 stage. Moreover, over the past 12 months, largecaps and midcaps have gained 6 per cent and seven per cent, respectively, outperforming smallcaps, which have risen 4 per cent. During the last 5 years, midcaps (CAGR: 32.4%) have considerably outperformed largecaps (CAGR: 19.9%) by 158 per cent, whereas 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 have been web patrons for the fourth consecutive month, investing USD 2.4 billion in Jun’25. DIIs additionally confirmed wholesome inflows, amounting to USD 8.5 billion in Jun’25. FII outflows from Indian equities have reached USD 8.2 billion in CY25YTD, in comparison with outflows of USD 0.8 billion in CY24.
Revenue-to-GDP ratio agency at 17-year excessive of 4.7%
In 2025, the company profit-to-GDP ratio for the Nifty-500 universe remained at 4.7 per cent, marking a 17-year excessive. Notably, for listed India Inc., the ratio stood at 5.1 per cent, a 14-year excessive. The sustained profit-to-GDP ratio for the Nifty-500 was positively influenced by sectors like telecom, PSU banks, healthcare, client, and infrastructure.
Market outlook
The brokerage famous that despite the fact that geopolitical tensions persist and world progress slows, India’s macroeconomic outlook presents a contrasting image. India’s nominal GDP grew 9.8 per cent in FY25, surpassing market expectations, and is projected to speed up additional to 10.8 per cent in FY26.
Though company revenue progress moderated in FY25 resulting from a excessive base in FY24, a slowdown in authorities spending throughout 1HFY25 amid elections, weak consumption, and unstable exports pushed by world uncertainties, the brokerage expects a gradual restoration forward.
Additionally, the Nifty index has rebounded notably over the past three months, fully reversing its YTD decline. At the moment, the Nifty is buying and selling 7.9 per cent greater in CY25YTD. With this rally, the Nifty trades at 22.5x FY26E earnings, close to its LPA of 20.7x.
The brokerage has a definite bias in the direction of largecaps and home performs, given the present unstable backdrop. It’s chubby on BFSI, Client Discretionary, Industrials, Healthcare, IT, and Telecom, whereas underweight on Oil & Gasoline, Cement, Vehicles, Actual Property, and Metals.
Largecap, midcap and smallcap concepts
The brokerage has listed shares similar to Bharti Airtel, ICICI Financial institution, L&T, Kotak Mahindra Financial institution, Titan, M&M, Trent, Tech Mahindra, and RIL as its prime picks inside the largecap basket.
Midcap and smallcap picks by the brokerage embody Indian Inns, HDFC AMC, BSE, Suzlon Vitality, Dixon Tech., SRF, Jindal Stainless, Coforge, Web page Industries, Kaynes Tech, and LT Meals.
