• Quarterly earnings breadth: Covered companies delivered 23% earnings growth ex-OMCs in the latest quarter against an expected 15%, driven by small-cap growth of 32% and 20 out of 31 sectors beating expectations.
• Full-year earnings outlook: Motilal Oswal projects full-year earnings growth of 15% for Nifty, 22% for mid-caps, and 30% for small-caps, supported by broader coverage earnings upgrades after a multi-year consolidation phase.
• Primary market supply: Heavy issuance of IPOs and QIPs is providing vital equity capital to support 18% credit growth and industrial capex, while serving as a key channel to attract foreign institutional inflows.
• Portfolio sector positioning: The firm shifted 700 basis points from large caps to mid- and small-caps, favoring non-bank financials, consumer discretionary over FMCG, power and defense industrials, new-age tech, and hospitals or CDMOs.