Angel One, CAMS and ICICI AMC among JP Morgan’s preferred bets on India’s SIP boom

Foreign brokerage giant JP Morgan has initiated coverage of India’s capital markets sector with a bullish outlook, arguing that the country’s fast-growing Systematic Investment Plan (SIP) ecosystem continues to drive long-term wealth creation despite muted equity market returns.

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 favourable regulatory positioning. Its preference order stands at Angel One, followed by CAMS, ICICI AMC, Nippon Life India Asset Management, and HDFC Asset Management Company.

According to JP Morgan, India’s capital market story remains firmly anchored by retail financialisation through SIPs. Monthly SIP inflows surged 48% year-on-year to Rs 310 billion in May 2026, even as the Nifty 50 delivered a modest 0.8% CAGR over the last two years and foreign portfolio investors sold nearly US$36 billion worth of Indian equities during FY25 and FY26.

The brokerage highlighted that SIPs accounted for nearly 77% of total equity and balanced fund net inflows in FY26, underscoring the resilience of retail participation despite market volatility. Supportive tax policies and a growing shift of household savings toward financial assets are expected to keep inflows strong in the coming years.

JP Morgan is also constructive on the structural growth of trading activity. Industry average daily premium turnover in index options has expanded from Rs 10 billion in FY14 to Rs 699 billion in FY26, driven by rising retail participation, algorithmic trading, and the proliferation of weekly expiry contracts. In the commodities segment, Multi Commodity Exchange of India witnessed a sharp surge in volumes, with futures average daily turnover jumping 138% year-on-year during FY26.

While several capital-market stocks have already delivered strong returns over the past year—including BSE Limited (+50%), MCX (+78%), and NAM (+56%)—JP Morgan believes earnings growth and operating leverage will increasingly differentiate winners from laggards.
The brokerage remains neutral on BSE and KFin Technologies, awaiting better entry points, while maintaining an underweight stance on Central Depository Services Limited and MCX.However, JP Morgan cautioned that its bullish thesis could be challenged if monthly SIP inflows fall below Rs 250 billion for a sustained period or if regulatory changes lead to a more than 20% decline in derivatives trading volumes.

For investors looking to ride India’s continuing financialisation wave, the brokerage sees Angel One, CAMS, and ICICI AMC as the standout beneficiaries of the country’s rapidly expanding retail investment ecosystem.

JP Morgan has assigned an Overweight (OW) rating to Angel One, CAMS, ICICI AMC, Nippon Life India Asset Management (NAM), and HDFC AMC. Among its preferred picks, the brokerage has set a price target of Rs 420 for Angel One, Rs 950 for CAMS, and Rs 4,090 for ICICI AMC. It has also given price targets of Rs 1,360 for NAM and Rs 3,250 for HDFC AMC.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)