India's Equity Markets: Top Stocks to Buy for Long-Term Growth

India's Economy Continues to Surprise on the Upside

Brokerage house InCred Research has reiterated its bullish stance on India's equity markets, maintaining an Overweight view on the Nifty 50. This comes as the economy continues to surprise on the upside, driven by a sharp rebound in personal consumption, an upbeat festive season, and better-than-expected GDP data for Q2 FY26.

Key Takeaways from InCred's December Update

InCred has updated its high-conviction stock list for December 2025, highlighting strategic portfolio adjustments and key opportunities across large-caps, mid-caps, and small-caps. The removal of Shriram Finance from its high-conviction basket is the headline change, following a 28% gain over the last two months.

Large-Cap Conviction Picks

InCred's conviction list includes established leaders with strong earnings visibility. Some of the top picks include:

• HDFC Bank (ADD) – Target price ₹1,180, implying 18% upside.
• TCS (ADD) – With improving demand trends in IT, the target price of ₹3,663 offers 15.2% upside.
• Bajaj Finance (ADD) – A high-quality lender with long-term secular growth, offering 22.4% upside.
• Maruti Suzuki (ADD) – Target ₹17,677, or 9.9% upside, as personal mobility demand remains robust.
• Axis Bank (ADD) – Also expected to deliver 18% upside.
• Tata Steel (ADD) – One of the strongest upside calls in the large-cap group, with a 34.2% return potential.

Mid-Cap and Small-Cap Ideas

Among mid-caps, InCred highlights Container Corporation of India (Concor) with 53.2% upside, Apollo Tyres with 9.4% upside, and Ajanta Pharma with 18.9% upside. In the small-caps category, Deepak Fertilisers (ADD) offers a robust 56.6% upside, while Thyrocare Technologies (ADD) has a standout 223% upside potential.

Macro Backdrop

InCred highlights that India's Q2 FY26 GDP growth of 8.2% significantly exceeded expectations, supported by strong private consumption growth of 7.9%. However, the brokerage cautions that rupee depreciation remains a concern, even as domestic drivers such as government spending and consumption revival help offset external pressures.

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