Q1 Earnings Outlook: Motilal Oswal Selects ICICI Bank Among Top 22 Stock Picks Across Market Caps
July 13, 2025 | Smart Money Mindset
As the Q1FY26 earnings season kicks off, investors face a complex backdrop shaped by significant market volatility and geopolitical uncertainties. Despite these challenges, leading brokerage Motilal Oswal has identified top stock picks across large-, mid-, and small-cap segments, highlighting ICICI Bank as a key large-cap favorite.
Volatile Start to 2025 Sets the Tone for Earnings Season
The first half of 2025 has been marked by heightened geopolitical tensions and international economic frictions, which have driven extraordinary market fluctuations worldwide. The S&P 500’s VIX index—a popular measure of market volatility—surged above 50%, while India’s volatility index also climbed past 20%, reflecting deep-seated investor unease.
This volatile environment created economic uncertainty and posed challenges for corporate earnings visibility, complicating decision-making for policymakers and market participants alike. Despite these headwinds, global equity markets demonstrated resilience. Motilal Oswal reports that major markets such as Korea (+25%), China (+20%), Germany (+19%), and Brazil (+19%) led gains through mid-2025, with the Indian market recovering by a modest 6% since January.
Motilal Oswal’s Model Portfolio and Sector Outlook
Projecting a gradual earnings recovery in FY26, Motilal Oswal has modestly increased its exposure to mid- and small-cap stocks, aiming to capitalize on emerging growth opportunities.
From a sectoral perspective, the brokerage remains overweight on Banking & Financial Services (BFSI), Industrials, and Healthcare — citing these sectors’ relative strength and durability in the current environment. It continues to maintain an underweight stance on Oil & Gas, Cement, and Metals segments, reflecting caution over cyclical pressures and commodity price volatility.
Notably, the Automobiles sector has been upgraded from underweight to neutral, signaling a more balanced viewpoint as Q1FY26 unfolds.
Top Large-Cap Picks Featuring ICICI Bank
Among large-cap stocks, Motilal Oswal’s top recommendations include:
- ICICI Bank: Positioned as a standout pick for banking sector exposure given its strong fundamentals and market positioning.
- Bharti Airtel
- Larsen & Toubro (L&T)
- Kotak Mahindra Bank
- Mahindra & Mahindra (M&M)
- Titan Company
- Bharat Electronics Limited (BEL)
- Ultratech Cement
- Macrotech Developers
- Indian Hotels Company
- Tech Mahindra
These picks underline a bias towards established players with robust business models expected to navigate volatility effectively.
Mid- and Small-Cap Favorites
In the mid- and small-cap space, Motilal Oswal has highlighted the following names for investors seeking growth:
- Dixon Technologies
- UTI Asset Management Company (UTI AMC)
- Suzlon Energy
- SRF Limited
- Jindal Stainless
- Coforge
- Page Industries
- Kaynes Technology
- Niva Bupa Health Insurance
- Supreme Industries
This selection reflects the brokerage’s confidence in companies with strong growth prospects and niche market leadership.
Investor Takeaway:
As the earnings season begins amid a volatile macroeconomic setting, Motilal Oswal’s diversified portfolio approach balancing large, mid, and small-cap stocks offers investors a strategic roadmap. With ICICI Bank leading the large-cap cohort, investors focused on quality financial institutions may find attractive opportunities despite broader market uncertainties.
Disclaimer: The recommendations and views expressed here reflect Motilal Oswal’s proprietary analysis and do not represent the views of Smart Money Mindset or any affiliated entities. Investors should conduct their own research or consult financial advisors before making investment decisions.
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