Premier Energies Ltd., Tech Mahindra Ltd. and Waaree Energies Ltd. are some of the top long additions in JPMorgan's latest India Equity Strategy. On the other hand, Hindustan Zinc Ltd. and Indian Oil Corp. have faced the axe from the list.
India's equity factor landscape shifted notably in March 2026, with Value emerging as the weakest-performing factor in the Nifty 500 universe on both a long/short and long-only basis, JPMorgan analysts led by Rajiv Batra wrote in a note. This marked a sharp reversal after a period of strong leadership that had been typical of an early-cycle market environment. The March drawdown has erased Value's relative advantage over a 12‑month horizon, prompting a reassessment of factor positioning.
In contrast, Quality and Growth factors were more resilient during the month. Although Value had benefited earlier in the cycle, recent volatility has diminished its appeal. Meanwhile, the All‑Weather composite factor continued to deliver consistent performance across timeframes and market regimes, underscoring its effectiveness as a diversified, cycle-agnostic strategy.
JPMorgan India Equity Strategy Stock Changes
Reflecting geopolitical risks and energy price pressures, MSCI India earnings growth forecasts have been cut by 2% and 1% to 11% for CY26 and 13% for CY27, respectively.
Despite this recent weakness, strategists expect some mean reversion in QMI, particularly if sentiment improves. The indicator currently places India in a mid-cycle phase, typically characterised by broadly supportive conditions with incremental improvements or deteriorations, and usually lasting 12-18 months.
Historically, mid-cycle market conditions have favoured Momentum and Quality factors. In line with this pattern, the equity strategy has pivoted toward adding Quality exposure while avoiding Value at this stage of the cycle, analysts said. Momentum remains the preferred factor, with a particular emphasis on earnings momentum in the Indian market.
March also brought several adjustments to factor-based stock screens, with new additions and deletions across All‑Weather, Momentum and Quality portfolios on both the long and short sides, reflecting evolving fundamentals and price trends.
Looking ahead, many preferred long-term themes, such as energy security, are represented among leading Momentum and Quality stocks. These opportunities are concentrated in sectors including Financials, Materials and Consumer Discretionary, which continue to rank among the top overweight categories in the current strategy.
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