After a rough 2023, many analysts now think Indian shares are cheaper than they should be. With earnings slowly growing and some global risks easing, 2026 could be a good year for investors who want exposure to India.
Why Indian equities look attractive
CLSA, a global brokerage, says the market’s low valuations plus steady profit growth make Indian stocks a decent hedge against worldwide uncertainty, such as AI‑related trade shifts or changes in the yen‑carry trade. The firm prefers large‑cap companies that have clear earnings outlooks, especially in finance, cement, consumer goods, and technology.
Top 15 stocks to watch
- ICICI Bank – Target ₹1,700. A pending leadership change and stronger loan growth could lift the share.
- State Bank of India (SBI) – Target ₹1,170. Maintaining market‑share in loans and matching risk‑adjusted returns will be key.
- Infosys – Target ₹1,814. Better US demand and higher S&P 500 earnings expectations should help the IT firm.
- ITC – Target ₹485. Growing core businesses and higher‑margin new ventures are the main drivers.
- UltraTech Cement – Target ₹14,000. Falling GST rates and cost‑saving steps set the stage for higher profits.
- NTPC – Target ₹459. New renewable projects, a first nuclear plant, and equipment orders should boost growth.
- ONGC – Target ₹330. A new oil field (KG 98/2) will increase output, adding value to the company.
- Eternal – Target ₹483. Its quick‑commerce model is expected to break even on an adjusted EBITDA basis by early 2026.
- Tata Motors – Commercial Vehicles – No specific price. Rising freight demand and lower costs after GST cuts point to a revival.
- Tata Motors – Passenger Vehicles – Target ₹450. JLR’s production is normalising and a new model launch could protect market share.
- Bajaj Auto – Target ₹10,604. New two‑wheel models, an affordable electric bike, and stronger export sales are positives.
- DMart – Target ₹6,105. Faster store openings, especially in tier‑2 and larger states, should keep the retailer ahead.
- Tech Mahindra – Target ₹1,705. The firm aims for a 15% EBIT margin and better‑than‑average growth by FY27.
- Godrej Properties – Target ₹2,850. A diversified land portfolio and improving profitability could lift the stock.
- IndusInd Bank – Target ₹725. Reaching a 1% return on assets and benefiting from a commercial‑vehicle cycle are key catalysts.
How to use this list
These stocks are chosen for their balance of risk and reward compared with the overall market. They are mostly large, liquid companies, which makes buying and selling easier for retail investors. As always, do your own research and consider your risk tolerance before investing.
Remember, this is perspective, not a prediction. Do your own research and consider seeking advice from a certified financial professional.