Motilal Oswal Unveils Top Stock Picks for Trading Week Starting January 27, 2026
In a recent market analysis, Motilal Oswal Financial Services Ltd has identified ICICI Bank and Tata Steel as its top stock recommendations for the upcoming trading week commencing January 27, 2026. This guidance comes amid a dynamic economic landscape, offering investors insights into potential high-performing assets. Below, we delve into the detailed rationale behind these picks, highlighting key financial metrics and strategic advantages.
ICICI Bank: A Robust Financial Powerhouse
ICICI Bank stands out with a current market price (CMP) of Rs 1,346 and a target price (TP) of Rs 1,700, indicating an impressive upside potential of 26%. The bank continues to capitalize on its formidable retail and corporate franchise, underpinned by disciplined risk management and superior operating metrics. Under the steady leadership of Mr. Sandeep Bakhshi, ICICI Bank is poised to sustain healthy loan growth momentum and deliver best-in-class profitability across economic cycles.
In the third quarter of FY26, the bank reported a profit after tax (PAT) of INR 113.2 billion, marking a 4% year-on-year decline due to one-off provisions of INR 12.8 billion related to agricultural sectors. Despite this, core performance remained steady, with net interest income (NII), pre-provision operating profit (PPoP), margins, and asset quality aligning with expectations. Notably, credit trends in unsecured portfolios showed signs of improvement, reinforcing the bank's resilience.
Motilal Oswal projects that ICICI Bank is on track to achieve a return on assets (RoA) of approximately 2.2% in FY26E, with an improvement to around 2.3% over FY27–28E. The firm has fine-tuned its estimates, modeling a RoA of 2.3% and return on equity (RoE) of 16.1% for FY27E, reiterating ICICI Bank as a top BUY recommendation for investors seeking stable returns.
Tata Steel: Leveraging Domestic Strength and Strategic Acquisitions
Tata Steel presents another compelling opportunity, with a CMP of Rs 188 and a TP of Rs 220, offering a 17% upside. The company is well-positioned to benefit from improving steel realizations, operational efficiencies, and robust domestic demand. While global tariff-related uncertainties may pose near-term challenges, sustained strength in the Indian market and an improving performance in Europe enhance long-term earnings visibility.
A key development bolstering Tata Steel's prospects is its acquisition of a 50.01% stake in Thriveni Pellets, which provides access to 4 million tonnes per annum (mtpa) of pellet capacity and a 212-kilometer slurry pipeline. This strategic move strengthens backward integration, supports upcoming expansion plans, and mitigates risks associated with expiring iron-ore leases by FY30.
Tata Steel is embarking on a multi-year expansion across long, flat, and downstream products, with capital expenditure set to rise in a phased manner to maintain balance sheet comfort. Additionally, the LMEL memorandum of understanding (MoU) and the company's footprint in Odisha enhance feedstock security and offer future capacity optionality, positioning Tata Steel for sustained growth in the steel industry.
Investment Outlook and Disclaimer
Motilal Oswal's recommendations underscore the potential for significant returns in the stock market, driven by strong fundamentals and strategic initiatives. Investors are advised to consider these insights as part of a diversified portfolio strategy, keeping in mind market volatility and individual risk tolerance.
Disclaimer: The recommendations and views on the stock market, other asset classes, or personal finance management tips provided by experts are their own. These opinions do not represent the views of The Times of India or its affiliates. Investors should conduct their own research or consult financial advisors before making investment decisions.
