Stocks to buy for long-term: ITC to BEL — MOFSL recommends THESE four blue-chip shares to buy today

Stock market today: Indian indices - Sensex and Nifty50 - started the day on a positive note on Thursday. This uptick followed the US Federal Reserve's decision to keep interest rates unchanged as anticipated while signaling two rate cuts later this year.

The Sensex surged by more than 850 points, while the Nifty 50 climbed to 23,179 during the session.

“Equity market surged for the third straight session with Nifty ending higher by 0.3% at 22,908 level. Nifty Midcap100 and Smallcap100 witnessed strong buying interest, closing with gains of over 2.5% each. Key factors driving the market include FII buying of Rs1,463 crores into Indian equities after 17 continuous sessions of selling and softness in the US dollar index. Amongst sectors, there was a sharp rally in financial services, realty, PSU banks, healthcare and metal indices as investors indulged in value buying. However, the IT index slipped by 1% amid cautiousness ahead of the US Fed’s interest rate decision tonight. Investors will watch out for the FOMC commentary for further guidance. With positive indication from the FIIs and continued domestic buying, we expect the market recovery to continue in the near term,” said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Brokerage firm Motilal Oswal has recommended four blue chip stocks to buy this week for investors who seek a balance between stable long-term growth and the safety of investing.

“We have curated a basket of four fundamentally strong companies which are industry leaders, having a competitive edge and a healthy balance sheet. The constituent companies are diversifed across leading sectors like banking, consumption, telecom, capital goods and defence,” the brokerage firm said in a note.

Stocks to buy

Bharti Airtel

Bharti Airtel’s strong free cash flow (FCF) generation, driven by tariff hikes in the India wireless segment, has significantly strengthened its financial position. With capex intensity moderating and the full impact of tariff increases flowing through, the company is expected to generate INR 1.3 trillion in FCF over FY25-27. Having largely repaid high-cost debt, Bharti now has leverage under control, making capital allocation the key monitorable factor that will likely drive stock performance in the medium term.

ICICI Bank

ICICI Bank is expanding its digital ecosystem and managing rising unsecured loan delinquencies. It maintains a stable deposit base, with a CASA ratio of 39%, ensuring liquidity strength. We estimate ~17% loan CAGR over FY24-27E. With steady RoA/RoE projections of 2.2%/16.8% for FY27 along with stable NIMs and investment in technology, ICICI Bank remains a top pick for its resilient performance and growth potential.

ITC

ITC’s core business of cigarettes has shown steady performance. With stable taxes on cigarettes, we anticipate sustainable growth in this business. In the FMCG space, ITC enjoys industry-leading growth over peers due to its strong category presence (large unorganized mix, under-penetrated etc).

Bharat Electronics

Bharat Electronics is well-positioned to benefit from defense electronics opportunities, with key orders expected from QRSAM, MRSAM, next-generation corvettes, and P75/P75I. We forecast a 19% CAGR in revenue over FY24-27, driven by increased market share and indigenized offerings.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.