• Earnings growth divergence: Nifty 50 earnings are projected to expand by 8–12%, while small-cap earnings are expected to deliver a 30% CAGR over the next two years following three years of muted growth.
• Corporate revenue acceleration: Corporate revenue is forecast to grow 17% in the current quarter, supported by nominal GDP growth of 12–13%, marking the strongest revenue growth since the December 2022 quarter.
• Model portfolio rebalancing: Motilal Oswal reduced large-cap exposure by 700 basis points to reallocate capital into higher-growth mid- and small-cap stocks.
• Sector allocation strategy: The portfolio remains overweight on lending and non-lending NBFCs, capital market intermediaries, industrials, and consumer discretionary, while keeping an underweight stance on large private banks and IT, alongside zero exposure to FMCG staples.