Top 2026 stock picks from 7 sectors; do you own any?

Geojit Financial Services, in its latest market strategy report, has projected a positive outlook for 2026, setting a Nifty50 base target of 29,150 by December 2026. This suggests a potential upside of around 12 per cent from current levels.

Geojit said that benign inflation and an improving demand environment, aided by both fiscal & monetary measures, suggest a turnaround in the domestic earnings cycle.

Here are the top stock picks and sectoral outlooks for 2026 as recommended by Geojit.

Banking & NBFCs

The financial sector is expected to benefit from an easing monetary policy. The brokerage noted that the RBI’s shift to an accommodative stance, including repo rate cuts, is improving financial liquidity. While Net Interest Margins (NIM) might face short-term pressure, the outlook for credit growth remains robust at double digits.

Geojit sees value in large-cap private banks, stating that large cap private banks now appear attractive, as their valuations remain below the five-year average.

Top picks: ICICI Bank, Federal Bank, RBL Bank, Can Fin Homes.

Infrastructure

With the government’s continued focus on capital expenditure, the infrastructure sector remains a sweet spot. Geogit expects the Index of Industrial Production (IIP) growth to accelerate, driven by manufacturing and electricity.

Specific attention is drawn to the power sector, where India plans significant investments to strengthen the grid. "The SHANTI Bill, 2025—permitting up to 49% private investment—is expected to accelerate private participation in nuclear projects," it said.

Top picks: Larsen & Toubro, HG Infra, PNC Infratech, Siemens, VA Tech Wabag, Power Mech Projects.

Information Technology

After a period of consolidation, the IT sector is tipped for a recovery in FY27, supported by stronger traction in AI-led deal activity. The brokerage pointed out that companies are optimizing costs and seeing near-peak utilisation rates.

While discretionary spending remains soft in the near term, the long-term fundamentals are supported by the adoption of generative AI and cloud technologies. "The sector is currently trading at a ~24x 1-Yr forward P/E, which is 8% discount to its 5-year historical average," the brokerage said.

Top picks: TCS, Infosys, Tech Mahindra.

Consumer Discretionary

Rising disposable incomes and a favorable demographic shift are fueling growth in the consumer discretionary space. The auto sector, in particular, is seeing traction due to affordable financing, new launches, cost-efficient production, and tax rationalization, the brokerage said.

Top picks: Maruti Suzuki, M&M, Havells, Titan, Crompton Greaves.

FMCG

The Fast-Moving Consumer Goods (FMCG) sector is poised for a steady comeback, primarily led by a rural recovery. Geojit attributed this to favorable monsoon, improved farm incomes, and government support through MSP and rural schemes.

Top picks: HUL, Avenue Supermart (DMart).

Healthcare

Healthcare remains a defensive yet high-growth bet, with the delivery industry projected to grow at a CAGR of roughly 12 per cent through FY28. Drivers include an aging population and rising insurance penetration, Geogit said.

Top picks: Apollo Hospitals, Mankind Pharma.

Realty

The real estate sector is riding the wave of urbanization and a consolidation phase that has kept inventory levels stable. With the RBI’s rate cuts expected to lower borrowing costs, affordability is set to improve, it added.

Top picks: Prestige Estates, Brigade Enterprises.