Top 10 Stocks for 2026 by HSBC; Sensex Set for 94,000 Milestone

HSBC Global Research has not changed the target for the Sensex, which remains at 94,000, and it has predicted high performance for the Indian stock market during the year 2026. Along with this, the international brokerage has upgraded India’s status to “overweight” in Asia, because of good corporate profits, development in specific sectors, and stability of the economy being the major contributors.

From the present point, HSBC says the benchmark index can rise more than 10% by the end of 2026. The brokerage firm brought into focus the fact that the prevailing market estimates forecast 10% and 14% for large-cap companies for FY26 and FY27 respectively; and, a total of 16% for FY27 only in the broader market.

In its report, HSBC said, “The latest series of company earnings has been a boost to our conviction about the Indian economy’s super cycle. Earnings cuts, in our opinion, have reached their nadir.”

Furthermore, by HSBC, it was noted that the valuation gap between India and the other emerging markets is shrinking and returning to the levels experienced in the past, thus equities have turned out to be more appealing to the investors. The paper delineates the coming of a gradual rise in the foreign capital inflow as the global funds wean away from the AI-focused sectors in the Asia and shift to the rest of the world.

The brokerage has pointed out the sectors, in particular, where the upswing would be most pronounced. Auto companies are likely to be among the biggest winners as interest rates come down. Telecom service providers could remain beneficiaries of the stable pricing and less competition in the industry. Energy companies will have the soft oil price by their side to help them in turning the tide their way.

HSBC’s 10 Recommended Stocks for 2026 are:

State Bank of India (Target: ₹1,110 | Upside: 16%)

Loan growth expectation is that SBI will at least keep pace with the growth of the system during FY26–27 or it can exceed. SBI’s low loan-to-deposit ratio is a strength that promotes its faster expansion.

Infosys (Target: ₹1,720 | Upside: 9%)

According to HSBC, the macro visibility of Infosys will be stronger in global markets during FY27 which will cause the IT sector to spend heavily. Projects with economic impact in mind will be the main drivers of a 5-7% CAGR in the dairy sector in the medium term.

Mahindra & Mahindra (Target: ₹4,000 | Upside: 10%)

Automaker's strategy and resiliency in earnings come along with M&M as one of the top picks. The company aims to grow its auto business eight times from 2020 into 2030.

Adani Ports (Target: ₹1,700 | Upside: 13.5%)

The logistics that the company would handle internationally are still expected to be the major area of its strong growth. The fact that the company won’t have to deal with operational costs that would be too high is an additional aspect that will be supporting the company in getting a better return on investments.

Apollo Hospitals (Target: ₹8,510 | Upside: 21%)

The profitability of the hospital chain is said to be positively affected by the digital health initiatives and the insurance services. Apollo 24/7 is getting very close to being cost-neutral in its operations.

Hindalco Industries (Target: ₹1,040 | Upside: 26.5%)

The expected growth of EBITDA is 14.6% CAGR for the period of FY24–28, and one of the major reasons for that will be the increase in the price of aluminium, recovery in Novelis margin, and growth in operational volume.

ICICI Lombard (Target: ₹2,250 | Upside: 16%)

The company expects its premium income to increase substantially, backing up by product innovations, the opening up of new distribution channels, and the gaining of the retail health market share.

Marico (Target: ₹870 | Upside: 20%)

Marico will strategically focus on the foods, D2C, and personal care businesses as well as set up a presence through inorganic diversification.

Kalyan Jewellers (Target: ₹690 | Upside: 49%)

The company plans for the opening of 84 steores in India, 6 abroad and 80 Candere stores to realise its expansion potential fully. Profit before tax margins are forecasted to improve in the second half of FY26.

Phoenix Mills (Target: ₹2,110 | Upside: 27.5%)

Phoenix Mills, which is the largest mall operator in India, is looking forward to a complete transformation into a mixed-use developer. The company is also working on upgrading its older malls to boost revenue growth.

HSBC is confident that these selections will deliver better performance in the context of India's growing macroeconomic and corporate environment, as it refers to the supportive monetary policy, tax reforms, and manageable inflation being the long-term investors' wind behind their sails.