Motilal Oswal Wealth’s 10 Diwali stock picks for Samvat 2083: Kotak Bank, Titan, Eternal, BSE and more

Samvat 2083 begins with a cautious mood on Dalal Street. An energy shock from the West Asia conflict is overshadowing an economy that is still growing strongly. The Nifty fell about 12% over Samvat 2082, and foreign investors have been selling heavily. But brokerage Motilal Oswal Wealth Management says earnings growth is set to return, and it has named 10 stocks for the Diwali season. Here is what is going wrong, what is going right, and which stocks are on the list.

Brent crude has stayed above $100 a barrel because of the West Asia conflict. That pushed retail inflation (CPI) to 5.54% in September. In response, the RBI raised the repo rate by 25 basis points to 5.50%. Foreign investors (FIIs) have pulled out a record $28 billion between January and September 2026. The rupee is trading near ₹95 to the dollar. Together, these pressures explain why large-cap stocks have struggled this year.

Despite the pressure on markets, the economy is doing well. GDP grew 7.8% in the first quarter of FY27. The government has budgeted ₹12.2 lakh crore for capital spending, and last year’s tax and GST relief is supporting demand. Domestic investors are filling the gap left by foreign sellers: monthly SIP inflows hit a record ₹32,490 crore in September. The IPO market is also busy, with Jio Platforms’ record IPO and NSE’s listing among the headlines, and over 225 companies are in the pipeline.

Motilal Oswal expects Nifty earnings per share to grow 16% in FY27 and 14% in FY28, compared with just 5% in FY26. That would mark a return to double-digit earnings growth. The Nifty trades at 17.5 times forward earnings, about 16% below its long-term average. Midcaps, after a roughly 10% correction, trade 6% below their long-term average. Smallcaps are still at a 25% premium, so the brokerage advises picking stocks selectively rather than buying the whole segment.

The brokerage is positive on four areas. First, banks and capital markets: loan growth of 15.1% to 15.9% is expected in FY27, and higher repo rates should lift loan yields. Second, manufacturing: healthcare devices, aerospace and auto components have strong order books. Third, global outsourcing: pharma ingredients, garments and port cargo benefit from trade deals and a weaker rupee. Fourth, consumption and digital: organised jewellery and quick-commerce platforms keep gaining market share.

Motilal Oswal Wealth Management has picked 10 stocks across four themes. In banking and capital markets: Kotak Mahindra Bank and BSE. In manufacturing: SPR Auto Components, Shaily Engineering and Unimech Aerospace. In global outsourcing and exports: Adani Ports, Arvind and Symbiotec Pharmalab. In consumption and digital: Titan and Eternal. The next four slides cover each pick and the reasons given for it.

Kotak Mahindra Bank is expected to grow loans at about 1.5 to 2 times nominal GDP growth across retail, small business and corporate lending. Margins should recover as surplus foreign currency deposits are put to work and higher repo rates reach loan yields, and unsecured loan quality is improving. The brokerage estimates net interest income to grow about 19.7% a year and net profit about 24.1% a year over FY26 to FY28, with a return on assets of 2.07% in FY27. BSE has seen futures and options turnover rise 85% so far in October 2026, and it holds over 30% of options premium turnover. Its operating margin rose from 9% in FY21 to over 65% in FY26, and the brokerage estimates about 27% annual net profit growth over FY26 to FY28. The partial rollback of closing auction norms from 7 December 2026 should also help.

SPR Auto Components is growing from a piston maker into a wider auto parts company, with over 45% market share in pistons. Acquisitions now add about 35% of revenue, and the brokerage estimates 21% annual net profit growth over FY26 to FY29. Shaily Engineering is riding rising demand for GLP-1 pens, new capacity and new platforms, with operating margins expected above 32% by FY28. It estimates revenue to grow 33% a year and net profit 48% a year over FY26 to FY28. Unimech Aerospace is backed by long-term global contracts and a strong nuclear order book. The brokerage estimates revenue growth of 75% a year and net profit growth of 69% a year over FY26 to FY28, with operating margins above 38%.

Adani Ports has ₹125 billion in cash and net debt of 1.8 times operating profit, which helps it fund expansion. Cargo volumes are expected to grow 14% a year over FY26 to FY28, with revenue up 17% and net profit up 21% a year. Arvind is turning into a garments and advanced materials business, and the possible India-UK trade deal is an added lever. Management expects garments to grow about 15% and advanced materials 18% or more in the second half, and the brokerage estimates 30% annual net profit growth over FY26 to FY28. Symbiotec Pharmalab holds a 38% global volume share in steroid-based ingredients and earns 67% of its revenue from exports. It is moving into contract drug development and complex injectables, with 33% annual revenue growth and 37% annual net profit growth estimated over FY26 to FY29.

Titan is India’s leading jewellery brand and benefits as buyers move from local jewellers to organised players. It had 3,551 stores as of June 2026, and a rising share of studded jewellery and its non-jewellery businesses add growth. Stable gold prices could improve margin visibility, and the brokerage estimates 23% annual net profit growth over FY26 to FY29. Eternal owns a leading food delivery platform and the Blinkit quick-commerce network. Blinkit’s store target has been raised to over 3,500 by the end of FY27 and about 5,000 by the end of FY28. The brokerage estimates revenue growth of about 75% a year and net profit growth of about 155% a year over FY26 to FY28.

The brokerage lists several key monitorables. First, the RBI’s rate path after the recent hike. Second, crude oil prices, since Brent is above $100. Third, foreign investor flows, which have been heavily negative. Fourth, the India-EU and India-US trade agreements, which are still being finalised. Fifth, whether earnings growth actually delivers the expected rebound. Also note that smallcaps still trade at a 25% premium, so a selective approach matters more there.

The picture is mixed: a tough external backdrop, but a strong domestic economy, cheaper large-cap valuations and a forecast earnings rebound. Motilal Oswal’s 10 Diwali picks lean on banking, manufacturing, outsourcing and consumption, where it sees the clearest growth. The stock-level figures are the brokerage’s own estimates, and actual results can differ. Disclaimer: This is a summary of one brokerage’s research, not investment advice. Please check the latest prices and consult a registered financial adviser before investing.