Motilal Oswal Predicts Steady Market Growth in 2026; Reveals Top Sector Picks

• Motilal Oswal forecasts steady Indian market growth in 2026, following a year of consolidation in 2025.
• Growth drivers include corporate earnings recovery, private investment revival, and supportive government policies, with the Union Budget 2026 being a key event.
• India's long-term structural growth story remains strong, backed by demographics, digital adoption, and financialisation of savings.
• The brokerage prefers large-cap stocks due to more reasonable valuations, advising a selective approach for mid and small-caps.
• Favourite sectors for investment include Financials, Consumption (discretionary, autos), Industrials/Capital Goods, and IT Services (medium-term).

Why It Matters: Motilal Oswal sees 2026 as a year of steady market growth, driven by strong fundamentals and key sectors.