The brokerage has named Angel One, Computer Age Management Services (CAMS) and ICICI Prudential Asset Management Company as its top investment picks, citing superior business models, attractive valuations and favorable regulatory status. Its order of precedence is Angel One, followed by CAMSICICI AMC, Nippon Life India Asset Management, and HDFC Asset Management Company.
According to JP Morgan, India’s capital markets story rests strongly on retail financialization through SIPs. Monthly SIP inflows grew 48% YoY to Rs 310 billion in May 2026, while the Nifty 50 delivered a modest 0.8% CAGR over the past two years and foreign portfolio investors sold Indian equities worth about US$36 billion during FY25 and FY26.
The brokerage highlighted that SIPs contributed about 77% to total equity and balanced fund net inflows in FY2016, underscoring the resilience of retail participation despite market volatility. Inflows are expected to remain strong in the coming years due to supportive tax policies and increased shift of household savings towards financial assets.
JPMorgan is also constructive on the structural development of trading activity. Due to increasing retail participation, algorithmic trading and proliferation of weekly expiry contracts, the industry’s average daily premium turnover in index options has grown from Rs 10 billion in FY20 to Rs 699 billion in FY26. In the commodity segment, the Multi Commodity Exchange of India witnessed a sharp increase in volumes, with futures average daily turnover increasing by 138% year-on-year during FY26.
While many capital-market stocks have already delivered strong returns in the last year – including BSE Ltd (+50%), MCX (+78%), and NAM (+56%) – JPMorgan believes earnings growth and operating leverage will increasingly separate the winners from the laggards.
The brokerage is neutral on BSE and Kfin Technologies, awaiting better entry points, while maintaining an underweight stance on Central Depository Services Ltd and MCX. However, JPMorgan warned that its bullish thesis could be challenged if monthly SIP flows fall below Rs 250 billion for a sustained period or derivatives trading volumes decline by more than 20% due to regulatory changes.
For investors looking to ride India’s continued financialization wave, the brokerage sees Angel One, CAMS and ICICI AMC as standout beneficiaries of the country’s rapidly growing retail investment ecosystem.
JP Morgan has given overweight (OW) rating to Angel One, CAMS, ICICI AMC, Nippon Life India Asset Management (NAM) and HDFC AMC. Among its preferred options, the brokerage has set price targets of Rs 420 for Angel One, Rs 950 for CAMS and Rs 4,090 for ICICI AMC. It also gave a price target of Rs 1,360 for NAM and Rs 3,250 for HDFC AMC.
(Disclaimer: The recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of The Economic Times)