Indian mutual fund industry's AUM has doubled in 3 years, fueling multibagger returns for AMC stocks like Shriram AMC, HDFC AMC, and Nippon India. SIP inflows remain strong, reaching record highs, driven by increasing retail participation and financialization of savings. Experts recommend HDFC AMC, Nippon India AMC, and KFinTech, citing growth potential and steady inflows.

India’s benchmark indexes closed in the green on Wednesday, led by gains in auto and financial stocks, as softer U.S. retail inflation bolstered bets on a Federal Reserve rate cut in September and signs of easing domestic price pressures lifted investor sentiment.

The markets remain volatile from the previous sessions, making it a significant challenge for investors to navigate them. In this environment, domestic brokerage firm Motilal Oswal has named 7 stocks as its fundamental picks, with an upside potential of upto 30%:

The BSE Sensex has delivered remarkable returns, growing from a base of 100 in 1979 to 80,000 in 2025, effectively doubling investors' money every five years. Despite market crashes, including a significant drop in March 2020, the Sensex has consistently rebounded, creating substantial wealth for investors. Experts predict continued growth, with projections reaching 1.

Foreign institutional investors (FIIs) are actively increasing their investments in seven smallcap stocks. These stocks have already delivered significant returns in 2025. Force Motors and SML Isuzu are among the top picks. FIIs are also raising stakes in Mangalore Chemicals, Camlin Fine Sciences, Gabriel India, Suven Life Sciences, and Axiscades Technologies.

The June quarter earnings season disappointed investors, with many companies reporting simultaneous declines in sales and profit. Despite some sectors like cement and healthcare showing strength, large sectors including IT, financials, and auto experienced weak earnings growth. Experts remain cautiously optimistic, anticipating a recovery in the second half of FY26, driven by factors like rate cuts and a favorable monsoon.

Saurabh Mukherjea highlights the pressure on urban consumption due to dwindling household savings and limited credit access. He suggests investing in top private banks like HDFC and ICICI, the growing pharma and healthcare sectors, particularly hospitals and diagnostics. Mukherjea also recommends considering European and American small and midcap companies due to attractive valuations and growth prospects.

Paytm's stock has experienced a significant surge in 2025, fueled by a recent RBI approval and a profitable first quarter. Analysts suggest potential for further gains, with targets ranging from Rs 1,220 to Rs 1,400. However, some caution that the rally may be overextended, advising investors to consider potential pullbacks as buying opportunities, while being aware of resistance levels.

Midcap valuations have cooled but remain elevated, says Satish Mishra, Fund Manager at Tata Asset Management. Backing capex-driven industrials, healthcare, and NBFCs, the Tata Midcap Fund focuses on “growth at a reasonable price” and sustainable compounders. Mishra advises SIPs over lump-sum investments amid volatility, with a 5-year+ horizon for those entering the midcap space now.

A Message from Jiraaf

Stay Ahead of the Curve with ET Bonds Hub

Looking to make smarter debt investments? Explore the ET Markets Bonds page – your one-stop destination for the latest on sovereign bonds, corporate debt, fixed income trends, and more.

Nitya Shah shares insights on financial independence through long-term investing. He highlights sectors like electronics, defence, and pharma as key to India's self-reliance. Shah advises against leveraged trading and emphasizes SIPs for retail investors. He suggests investing in index funds or flexi-cap funds to celebrate Independence Day. Patience, trust, and self-reliance are crucial investment principles.

Trump Tariffs Impact: Indian stock markets face uncertainty due to potential US tariffs. Investors are hesitant, awaiting trade deal clarity. Export-oriented sectors like textiles and auto ancillaries are most vulnerable. Focus shifts to domestic consumption-based businesses. Analysts suggest buying opportunities may arise from market corrections. Long-term investors are advised to remain steady. The rupee's decline offers some respite for exporters.