Stocks to buy for long term: HSBC pegs Sensex target at 94,000 in 2026; names its 10 favourite stocks - full list here

Stocks to buy for long term: India’s equity markets are poised for a stronger performance in 2026 supported by lower inflation, ongoing tax reforms, and a more accommodative monetary policy, according to a latest report by HSBC Global Research. The international brokerage upgraded its stance on India to ‘overweight’ within the Asia region, reflecting its confidence in the country’s economic resilience and corporate earnings outlook.

HSBC reiterated its earlier year-ahead projection for the benchmark index, maintaining its Sensex end-2026 target at 94,000, which implies over 10% upside from current levels.

“We are overweight India in an Asia context; our unchanged Sensex end-2026 target is 94,000, up 10% from current levels,” HSBC said in the report.

The report underlined that consensus forecasts now indicate 10% growth in FY26 and 16% in FY27 (14% for large-caps), signalling a sustained earnings recovery. HSBC highlighted that recent corporate results have further strengthened its conviction in the market’s growth trajectory.

The brokerage wrote, “The worst of the earnings downgrades seems to be behind us, and recent results have boosted our confidence in the growth outlook.”

With India’s valuation premium over emerging markets moderating back to historical averages, HSBC believes the entry point for investors has become more appealing. The firm also expects an uptick in foreign inflows as global funds increasingly diversify away from AI-heavy sectors in the rest of Asia. The brokerage sees multiple sectors benefiting in the coming cycle. Autos are expected to gain from lower interest rates, telecom players should continue to benefit from strong pricing and limited competition, and the energy sector is seen as well-positioned in a soft oil price environment.

HSBC’s Top 10 Stock Picks for 2026

State Bank of India (Target: ₹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 (LDR) offers room to grow faster than peers.

Infosys (Target: ₹1,720 | Upside: 9%)

HSBC anticipates improved global macro visibility in FY27, leading to higher IT spending. It expects a 5–7% CAGR in the medium term, driven by a rising share of discretionary projects.

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

The brokerage likes M&M for its earnings resilience and long-term growth plan. The automaker aims for 8x growth in its auto business between 2020–2030, translating to a 20% revenue CAGR in the next five years.

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

HSBC sees strong growth across the company’s businesses, especially in international logistics, with improving margins. The reports notes that emerging segments require lower capex, supporting higher ROCE.

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

The outlook for the hospitals business remains robust. Apollo 24/7 is expected to achieve cost-neutrality soon, with digital health and insurance services contributing meaningfully to revenue and profitability.

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

HSBC expects 14.6% EBITDA CAGR over FY24–28e, supported by strong aluminium prices, margin recovery at Novelis, and volume growth across operations.

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

HSBC’s top pick in insurance, ICICI Lombard is expected to outperform in premium growth driven by product investments and distribution expansion. Market share gains are expected in retail health.

Marico (Target: ₹870 | Upside: 20%)

The brokerage likes Marico for its aggressive diversification and inorganic expansion. Growth in foods, D2C and personal care segments is seen as a key differentiator.

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

With the jewellery sector poised for expansion, Kalyan plans 84 store openings in India, six overseas, and 80 Candere stores, supporting its growth trajectory. PBT margin is expected to improve in 2HFY26.

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

Now India’s largest mall operator, Phoenix Mills is evolving into a mixed-use developer with strong momentum in new leasable areas. Its legacy malls are also undergoing refresh cycles.

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.