Trent, Infosys, HDFC Bank, NTPC among HSBC's 11 stock picks; key details

After six straight sessions of decline, the Indian equity market is staring at a much-needed comeback. On September 26, 2025, HSBC Global Investment Research said the domestic market looks attractive once again. In cricketing terms, it expects the market to return to form.

The NSE Nifty50 has slipped more than 700 points since September 18, but HSBC believes valuations are back at historical levels and earnings are near the bottom, setting the stage for a recovery. “Lower inflation and easing measures should support growth,” the firm noted.

In its latest note, HSBC rolled out a playing XI of preferred stocks: Marico (Target price: Rs 870), Trent (Rs 6,500), Mahindra & Mahindra (Rs 4,000), Phoenix Mills, HDFC Bank (Rs 1,150), ICICI Lombard (Rs 2,285), UltraTech Cement (Rs 15,410), Infosys (Rs 1,790), Adani Ports & SEZ (Rs 1,650), Divi’s Lab (Rs 7,700), and NTPC (Rs 400). Commenting on Trent, HSBC said, “We prefer Trent in consumer discretionary given it has one of the highest growth outlooks across our coverage.”

On the sectoral front, it expects auto sales to pick up, consumer staples to see a margin recovery next year, and lenders to enjoy stronger margins by 2026. Tech services, it said, are back in play after a major re-rating, while pharma risks from US tariffs are limited given America’s dependency on Indian generics. Telecoms and hospitals, HSBC added, remain structural growth plays.

“Consumer demand has been muted in the durables sector for the last couple of quarters. Recent government initiatives, like a reduction in personal income taxes and GST reforms, are set to raise consumers’ disposable income. We expect the timely GST reform just before the festive season to drive growth in the durables industry in H2 FY26,” HSBC said.

India’s pharma exports touched $10 billion in FY25, even as US President Donald Trump announced tariffs of up to 100% on branded and patented drugs starting October 1.

Meanwhile, foreign institutional investors (FIIs) have sold shares worth more than Rs 2 lakh crore in the past year, but HSBC believes conditions are ripe for their return.

“Any negative news on AI could shift flows away from Korea and Taiwan back into India. With the US Fed resuming rate cuts and a weak dollar, India could be the outsized beneficiary,” HSBC said, adding that while the US tariffs will have a limited impact on earnings, any positive trade developments could trigger flows from investors sitting on the sidelines.