Expert view: Overweight on diversified financials, automobiles, new age tech firms, says Nandish Shah of Motilal Oswal

Nandish Shah of Motilal Oswal recommends overweight positions in diversified financials, automobiles, new-age tech, manufacturing/industrials, and consumer discretionary, expecting corporate earnings to clock ~15% CAGR over FY28 despite Q1FY27 pressure. Defence emerges as a key theme with DAC approving ₹52,000 crore in AoNs and ₹1.3 lakh crore in fast-track procurements, while FII flows have turned from net selling of ~$0.4bn/day during the West Asia conflict to net buying of ~$0.1bn/day post US-Iran ceasefire. FII holdings in Nifty 500 hit a record low of 17.1% (down 180bps YoY) while DII ownership rose to an all-time high of 20.9%, signaling a historic shift in ownership patterns.