Iran war, earnings hit and more: Brokerages identify nearly 80 stocks from a battered Indian market for FY27
Why it matters: Brokerages have identified nearly 80 Indian stocks for FY27, signaling potential opportunities for investors.
- Kotak Equities expects the conflict to persist for weeks, not months, with oil prices remaining elevated in the near term before stabilizing at a higher-than-pre-war range, leading to limited changes in earnings estimates so far.
- Motilal Oswal described FY26 as a "near six-sigma" phase for Indian equities, with India underperforming global peers by falling 14% in dollar terms, but notes the recent correction has reset Nifty valuations to around 17.7x forward earnings, a discount to long-term averages.
- Elara Securities echoes the view that valuations are now below long-term averages, historically acting as a "bounce zone" outside extreme crises, especially as crude prices ease from recent highs.
- Kotak's preferred basket includes consumption, digital, and manufacturing-linked plays such as DLF, Godrej Consumer, Info Edge, and Dixon Technologies.
- Motilal Oswal's preferred ideas span market leaders and structural plays like Bharti Airtel, SBI, ICICI Bank, and Infosys, alongside broader opportunities in Tata Steel and Dixon Technologies.
Amidst an 8-10% market correction driven by geopolitical conflict and concerns over corporate profitability, brokerages like Kotak Equities, Motilal Oswal, and Elara Securities are identifying nearly 80 Indian stocks for FY27, believing the sell-off has created favorable entry points despite lingering risks.
