
Market strategy: Largecap valuations attractive, RBI rate cuts may spur FY26 rally: JM Financial; Check top stock picks
Live MintStock market strategy: The Indian stock market benchmark indices, Sensex and Nifty 50, declined over a percent each on Monday, weighed down by weak global cues. Additionally, the balanced fiscal approach of the Union Budget 2025-2026, potential repo rate cuts by the Reserve Bank of India, and attractive large-cap valuations are expected to be key drivers for FY26. Midcap and small cap valuations still seem expensive even though earnings growth might be stronger in these names vis-à-vis large caps,” JM Financial said. Rate Cuts on the Horizon JM Financial anticipates the RBI will commence a shallow rate cut cycle of 50 basis points to 75 bps in 2025, starting from February. Top stock picks post Budget JM Financial’s top stock picks post-Budget FY26 include Reliance Industries, Bajaj Finance, DLF, Havells India, Tata Consultancy Services, Larsen & Toubro, HDFC Life Insurance Company, SRF, Bharti Airtel, Sun Pharmaceutical Industries, Hindalco Industries, BHEL, ITC, Maruti Suzuki India, Godrej Consumer Products and KPIT Technologies.
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