INSUBCONTINENT EXCLUSIVE:
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.
