Synopsis:
JP Morgan has identified 41 stocks across key sectors as overweight, reflecting optimism on India’s consumption recovery, robust capital expenditure cycle, and structural growth themes in defense and finance.
India’s equity markets have drawn renewed attention from global investors, with JP Morgan highlighting 41 stocks across various sectors as overweight. The brokerage sees improving demand trends in the second half of FY26, driven by consumption recovery, infrastructure spending, and structural growth opportunities, positioning these stocks as key picks for investors to watch.
JP Morgan’s Overweight Stocks
The consumer discretionary sector comprises companies whose products and services are considered non-essential but desirable, often reflecting lifestyle, travel, and luxury trends. JP Morgan’s overweight stocks in this sector include M&M, Hyundai, Eicher, Maruti, Eternal, MakeMyTrip, Vishal Mega Mart, Indian Hotels, and THELEELA (Leela Palaces Hotels & Resorts).
Consumer staples include companies producing essential goods such as food, beverages, and household products, which see steady demand irrespective of economic conditions. JP Morgan’s overweight picks in this segment are Britannia, Marico, and HUL.
The financial sector covers banks, non-banking financial companies (NBFCs), insurance firms, and asset management companies, forming the backbone of capital markets and lending activity. JP Morgan’s overweight financial stocks include ICICI Bank, Kotak Bank, SBI, Bank of Baroda, Shriram Finance, M&M Finance, Bajaj Finance, HDFC AMC, KFin Tech, SBI Life, LIC India, and GIC Re.
The materials sector encompasses companies involved in the production and processing of metals, chemicals, cement, paints, and other industrial inputs. JP Morgan’s overweight picks in materials are JSW Steel, Hindalco, UltraTech Cement, Pidilite, and Asian Paints.
The healthcare sector, particularly hospitals, focuses on providing medical services, diagnostics, and patient care. JP Morgan’s overweight hospital stocks include Apollo Hospitals, Fortis Healthcare, and Max Healthcare.
The real estate sector includes residential, commercial, and infrastructure developments, as well as real estate investment trusts (REITs). JP Morgan’s overweight real estate picks are DLF, Oberoi Realty, Nexus REIT, and Embassy REIT.
The defense sector consists of companies engaged in manufacturing, research, and maintenance of military equipment and technologies. JP Morgan’s overweight defense stocks include BEL and HAL.
The power sector involves generation, transmission, and distribution of electricity, supporting industrial and residential consumption. JP Morgan’s overweight power stocks include NTPC, Power Grid, and CG Power.
Also Read: Chemical stock falls after Goldman Sachs offloads ₹84 Cr worth of shares in the company
JP Morgan On India Strategy
Leaders in the consumer sector are cautiously optimistic about stronger demand in the second half of FY26. The auto sector is showing signs of recovery, with two-wheelers experiencing double-digit growth and small car sales rebounding.
Asset quality continues to be stable, with stress remaining limited and localized. India’s capital expenditure cycle remains robust, while the defense sector continues to offer structural growth opportunities. Overall, India’s long-term growth fundamentals remain solid, underpinning JP Morgan’s positive outlook on these overweight picks.
Written By Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
