Top Stocks 2026: Market expert said that the market was affected by recession in 2025, but these stocks are expected to rise again in 2026…
highlights
- While the market was hit by recession in the year 2025, hopes for 2026 seem to be rekindling.
- Experts see the possibility of another rise in defence, select infra shares and some banking stocks.
- In a special conversation with ET NOW Swadesh, the market expert gave the strategy on top stocks for 2026.
2026 Stock Pics : The year 2025 saw a strong attack on the stock market. The market slipped from the upper levels and many big stocks fell sharply. In such a situation, the biggest question in the minds of investors is whether the market will bounce back again in 2026? This question was specifically discussed in the special offer of ET NOW Swadesh, in which Sunny Aggarwal, Senior Expert, SBI Capital Securities, gave his opinion on different sectors and selected stocks.
A lot of pressure was seen on the stock market in the year 2025. The stocks which had earlier given good returns came down from the upper levels. Now investors want to know whether the market can pick up again in 2026. Market experts said that there was a recession on the market in 2025, but these stocks are expected to rise again in 2026. He said that one can get good profits by choosing the right shares and investing gradually.
Sectoral movement before budget
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Sunny Aggarwal said that every year a pattern is seen around the budget. About one-and-a-half month before the budget, movement starts in stocks related to defence, railways, capital goods, real estate and cement. The same trend seems to be happening this year also. Many defense stocks have fallen from their high levels, but are now looking attractive in terms of valuations.
Defense Sector: Long term story continues
Talking about the defense sector, Sunny Aggarwal said that in the long term, the story of this sector is completely strong. Government support, continuous capex and export demand will continue to strengthen it in the next 5 to 10 years.
The company’s order book is around ₹23,000 crore, which will be executed in the next 4–5 years. Additionally, there is a strong order pipeline of ₹15,000–20,000 crore. In terms of valuation, BDL is trading at around 40x P/E for FY27 and P/B is less than one.
According to Sunny Aggarwal, it can be added to the portfolio for medium to long term investment. He gave a target of ₹1,800 for BDL.
NCC share monitored from infra sector
Talking about the infrastructure sector, NCC (Nagarjuna Construction Company) has been among the big wealth destroyers this year. The stock rose from ₹50–55 to ₹350 between mid-2022 and mid-2024, but after that the stock fell badly due to weak results and project delays.
Sunny Aggarwal said that FY26 has been a weak year for the infra sector. The main reasons for this were delay in government payments and obstruction in the execution of projects. However, much of the negativity has already been discounted at current prices. He believes that investors should gradually build positions in infra stocks including NCC and make big bets only after the next 1-2 quarter results.
The expert said that if someone wants to make a position in the infra space, then make it slowly. I will not give the opinion that today you have to go and buy it from the infra company.
Talking about IndusInd Bank, Sunny Aggarwal said that this bank is currently in a state of ‘work in progress’. The stock remained under pressure due to negative management-related news, problems in the microfinance segment and corporate governance issues. However, the bank has taken necessary provisions and now most of the negative factors have been factored into the pricing, he said.
He said that the bank is currently trading below a price-to-book, which is attractive in terms of valuation. If the bank is able to show normal credit growth of 12–13% in the coming time, then there may be a possibility of re-rating again. His opinion is that investors should invest in this also slowly and with small allocation.
Sunny Agarwal’s top pick for 2026
The list of Sunny Aggarwal’s favorite stocks includes-
Bharat Dynamics (BDL) – Target Rs 1,800
Eternal- Target Rs 480
REC – Target Rs 450
DLF – Target Rs 1,000
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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