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JP Morgan Favors Small and Mid-Caps Over Large Caps While Going Underweight on IT
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News18•08-10-2026, 20:00
JP Morgan Favors Small and Mid-Caps Over Large Caps While Going Underweight on IT
- •Brokerage JP Morgan expressed strong optimism for Indian small- and mid-cap stocks compared to large-caps due to concentration in high-growth themes like capex and artificial intelligence.
- •JP Morgan remains overweight on sectors including financials, consumer discretionary, industrials, healthcare, and materials, while placing the IT sector under the underweight category.
- •For Nifty-50 large-cap companies, the brokerage anticipates a median revenue growth of 14 percent and post-tax profit growth of 15 percent for the September quarter.
- •Robust economic indicators such as a 15 percent growth in GST collections and high manufacturing PMI highlight strong economic activity during the September quarter.
- •Key macroeconomic events to monitor include the US-Iran ceasefire developments, IPO pipelines, trade deals, and the RBI's interest rate and liquidity policies.
Key Questions Answered
JP Morgan expects small- and mid-caps to continue outpacing large-caps in earnings growth because compelling high-growth themes such as capital expenditure, modern manufacturing, and AI or data centers are heavily concentrated in those segments.
The brokerage is overweight on sectors including financials, consumer discretionary, industrials, healthcare, and materials, while placing the information technology sector in the underweight category.
A combination of factors, such as a 15 percent growth in GST collections, higher average manufacturing PMI, and non-food bank credit growth averaging 19.2 percent, point to strong economic activity during the September quarter.
