Domestic brokerage Motilal Oswal has increased weightage on Maruti Suzuki India, Axis Bank, LIC Housing Finance and introduced Brigade Enterprises in its model portfolio.
The brokerage continues to be bullish on corporate banks, consumer, IT and auto (fourwheelers).
Correction in mid-caps offers good opportunity for bottomup idea selection across sectors, said Motilal Oswal.The brokerage has recently made these changes to its model portfolio.Motilal Oswal said the December corporate earnings-report season for the Nifty was in line with expectations, with domestic cyclicals led by financials picking up the baton from global cyclicals as the driver of earnings growth.
Corporate banks, IT and consumer delivered a strong performance, while autos and Cement disappointed.Corporate banks showed a material sequential improvement in the slippage and asset quality trends, which provides good visibility on the earnings outlook, as corporate banks were one of the key drivers for the earnings miss over the past few years, said Motilal Oswal."Overall, the direction of earnings revision is still trending down, dominated by a big miss in some of the large-caps in global cyclicals like Tata Motors," said Motilal Oswal.