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May 20, 2026, 01:52:56 PM IST
International brokerage JPMorgan in its latest 'Global Strategy' report, highlighted that most Nifty companies that have released their Q4 results so far performed better than expected. However, it warned that FY27 earnings are likely to face pressure from higher input prices and currency depreciation after the prolonged closure of the Strait of Hormuz, adding that the Nifty 50 index could fall to 20,500 in its bear-case scenario. In this backdrop, JPMorgan has highlighted five sectors it remains overweight on, and 30 stocks part of these sectors.
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JPMorgan upgraded its rating on the industrials sector from ‘Neutral’ to 'Overweight', driven by strong government-backed infrastructure spending and electrification demand, defense modernisation and indigenisation push and manufacturing expansion. It explained that the government is reaccelerating infra capex and advancing asset monetisation, keeping the award pipeline healthy. The cycle is also broadening beyond traditional infrastructure into data centers, electronics, energy storage and grid upgrades, benefiting HV equipment, construction conglomerates, cables & wires and the broader capital goods space. EPC companies are also poised to benefit from the Middle East reconstruction efforts, following the devastation caused by the recent Middle East conflict, it added. The sectoral stocks named by JPMorgan include Larsen & Toubro (L&T), Bharat Electronics (BEL), Adani Ports, NTPC, Power Grid, CG Power, GE Vernova T&D, Hitachi Energy and Polycab.
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Apollo Hospitals, Max Healthcare, and Global Health (Medanta) were the stocks named by JPMorgan as it remains ‘Overweight’ on the hospitals sector. Apollo Hospitals and Max Healthcare shares have gained nearly 5% each in the past month, while those of Medanta jumped over 15% in the same period.
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JPMorgan remains bullish on Vedanta, Hindalco, JSW Steel and Pidilite Industries. The international brokerage has an ‘Overweight’ call on the materials sector. It highlighted that materials, along with IT, had the most positive earnings revisions for the calendar year 2026 over the past month.
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Financials were also among JPMorgan's 'Overweight' sectors. ICICI Bank, State Bank of India (SBI), Axis Bank, AU Small Finance Bank, Bajaj Finance, HDFC AMC, Max Financial and SBI Life were the stocks part of the sector which were named by the international brokerage in its report.
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6/6
Consumer discretionary
Maruti Suzuki India, Mahindra & Mahindra (M&M), TVS Motor Company, Hero MotoCorp, Zomato-parent Eternal, and Vishal Mega Mart were named by JPMorgan in its report as part of the consumer discretionary sector, which got an ‘Overweight’ rating from the international brokerage.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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