The brokerage firm JM Financial recently launched its India Model Portfolio, highlighting key opportunities in the current market. The brokerage is ‘Overweight’ on five key sectors which include – Banking, Real Estate & Hospitality, Telecom, Infrastructure, and Defence.
Let’s take a look at the reason behind these sector calls and the top stocks that JM Financial is betting on.
JM Financial on Banking
The brokerage has gone 119 basis points Overweight on banks, which forms the core of its strategy. Its top picks include ICICI Bank, Axis Bank, HDFC Bank, SBI, and DCB Bank.
According to the brokerage, the shift in the RBI stance from inflation-focused to growth-oriented- plays a major role. “There is a clear shift in the approach of the monetary policy post the change of guard at the helm of the RBI,” JM Financial said in the note, referring to Governor Malhotra’s prioritisation of growth.
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The brokerage is also 85 bps Overweight on real estate and hospitality, a sector that had been long subdued but is now seeing a gradual revival. The top recommendations here include DLF, Embassy REIT, and Chalet Hotels.
With urban housing demand steady and hospitality benefiting from both domestic travel and business recovery, this cluster of sectors is poised for growth.
JM Financial on Telecom
With a 69 bps Overweight stance, JM Financial’s telecom bet rests squarely on Bharti Airtel. The firm believes that India’s telecom sector is gradually shedding the pricing pressures of the past and entering a phase of ARPU improvement.
As per the brokerage, Bharti’s position in both mobile and broadband, along with 5G rollout and cost efficiency, makes it a compelling pick in the current environment.
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Infrastructure, long the engine of economic momentum, is Overweight by 52 bps, with Larsen & Toubro (L&T) as the flagbearer.
JM Financial on Defence
Simultaneously, the brokerage house is Overweight on Defence with 49 bps weightage, where it prefers Bharat Electronics (BEL).
“The capex allocation of Rs 11.2 trillion for FY26 is substantial and should drive growth,” the note said.
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