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HSBC reiterated its year-ahead outlook for the index, retaining its Sensex end-2026 target at 94,000, which implies an upside of over 10%
Stock Market Today.
Stocks To Buy For Long Term: India’s equity markets are set for a stronger run in 2026, supported by easing inflation, ongoing tax reforms and a more accommodative monetary policy, according to a latest report by HSBC Global Research. Reflecting confidence in India’s economic resilience and earnings outlook, the brokerage has upgraded its stance on India to ‘overweight’ within the Asia region.
HSBC reiterated its year-ahead outlook for the benchmark index, retaining its Sensex end-2026 target at 94,000, which implies an upside of over 10 percent from current levels.
“We are overweight India in an Asia context; our unchanged Sensex end-2026 target is 94,000, up 10 percent from current levels,” HSBC said in the report.
The brokerage noted that consensus estimates now point to earnings growth of 10 percent in FY26 and 16 percent in FY27 (14 percent for large-cap stocks), indicating a sustained recovery. Recent corporate results have further strengthened HSBC’s confidence in the market’s growth trajectory.
“The worst of the earnings downgrades seems to be behind us, and recent results have boosted our confidence in the growth outlook,” the report said.
With India’s valuation premium over emerging markets easing back towards historical averages, HSBC believes market entry points have become more attractive. The brokerage also expects foreign inflows to pick up as global investors diversify away from AI-heavy segments in other Asian markets. It sees several sectors benefiting in the next cycle, with autos likely to gain from lower interest rates, telecom companies continuing to benefit from strong pricing and limited competition, and the energy sector well positioned in a softer oil price environment.
HSBC’s Top 10 Stock Picks for 2026
State Bank of India (Target: Rs 1,110 | Upside: 16%)
HSBC expects SBI’s loan growth to match or exceed system growth in FY26–FY27. Its low loan-to-deposit ratio provides room to outpace peers.
Infosys (Target: Rs 1,720 | Upside: 9%)
Improving global macro visibility in FY27 is expected to lift IT spending. HSBC sees a 5–7 percent CAGR in the medium term, driven by a higher share of discretionary projects.
Mahindra & Mahindra (Target: Rs 4,000 | Upside: 10%)
The brokerage favours M&M for its earnings resilience and long-term growth strategy. The automaker is targeting eight-fold growth in its auto business between 2020 and 2030, implying a 20 percent revenue CAGR over the next five years.
Adani Ports (Target: Rs 1,700 | Upside: 13.5%)
HSBC sees strong growth across businesses, particularly in international logistics, alongside margin improvement. Emerging segments require lower capital expenditure, supporting higher ROCE.
Apollo Hospitals (Target: Rs 8,510 | Upside: 21%)
The outlook for the hospitals business remains strong. Apollo 24/7 is expected to reach cost neutrality soon, with digital health and insurance services contributing meaningfully to revenues and profitability.
Hindalco Industries (Target: Rs 1,040 | Upside: 26.5%)
HSBC expects an EBITDA CAGR of 14.6 percent over FY24–28, driven by firm aluminium prices, margin recovery at Novelis and volume growth across operations.
ICICI Lombard (Target: Rs 2,250 | Upside: 16%)
HSBC’s top pick in insurance, ICICI Lombard is expected to outperform peers on premium growth, aided by product investments and distribution expansion. Market share gains are likely in retail health.
Marico (Target: Rs 870 | Upside: 20%)
The brokerage likes Marico for its aggressive diversification and inorganic expansion strategy. Growth in foods, D2C and personal care segments is seen as a key differentiator.
Kalyan Jewellers (Target: Rs 690 | Upside: 49%)
With the jewellery sector poised for expansion, Kalyan plans 84 new stores in India, six overseas outlets and 80 Candere stores. PBT margins are expected to improve in the second half of FY26.
Phoenix Mills (Target: Rs 2,110 | Upside: 27.5%)
India’s largest mall operator is transitioning into a mixed-use developer, with strong momentum in new leasable areas. Its legacy malls are also undergoing refresh cycles, supporting growth.
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