Stocks To Buy: Motilal Oswal Recommends Top 16 Stocks In BFSI Sector; HDFC Bank, Nuvama Among The List

After the recent outperformance by the banking sector, Motilal Oswal has further narrowed down our top ideas and selected 16 stocks in Motilal Oswal's BFSI top picks 2.0 from our coverage of ~70 names..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.FY25 was a challenging year for the BFSI sector. Over the past 12 months (June 24-25), Bank Nifty and the Nifty Financial Index posted returns of 8.1% and 14.6%, respectively, compared with 5.4% for the Nifty-50. Several BFSI stocks delivered healthy double-digit returns over the past 12 months, such as HDFC Bank (17%), ICICI Bank (23%), Kotak Mahindra Bank (23%), Federal Bank (17%), PNB Housing Finance (24%), HomeFirst (20%), Bajaj Finance (25%), HDFC Life (28%), BSE (187%) and Nuvama (33%). With a cumulative 100bp reduction in the repo rate by the RBI, FY26 earnings will start on a softer note for banks; however, with a gradual repricing of deposits and benefits from the CRR cut effective Sep’25, we estimate the earnings trajectory to recover from H2 FY26 onward. NBFCs, especially vehicle financers, will benefit from rate cuts, as lower funding costs will result in NIM expansion of 10-25 bp across lenders and help the sector pivot back to growth. Non-lending financials will continue to provide attractive investment opportunities over the year. After the recent outperformance by the sector, we have further narrowed down our top ideas and selected 16 stocks in our Motilal Oswal's BFSI top picks 2.0 from our coverage of ~70 names..Click on the attachment to read the full report:.Aditya Birla Lifestyle Gets 'Neutral' Rating As Motilal Oswal Resumes Coverage.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Stocks To Buy: Motilal Oswal Recommends Top 16 Stocks In BFSI Sector; HDFC Bank, Nuvama Among The List

Motilal Oswal prefers private banks over public sector banks; NBFCs and non-lending financials well positioned

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