As the financial landscape evolves, investors are faced with a unique blend of challenges and opportunities. Following a turbulent selloff since October, the Nifty 50 index experienced a remarkable turn, finishing the fiscal year 2025 with a modest 5% gain. March proved to be a turning point, with the index soaring over 6%, breaking a five-month slump, fueled by favorable valuations, foreign investments, and encouraging economic signs. However, experts advise caution, given the looming uncertainties, particularly the trade tensions stemming from U.S. tariff policies.

Navigating Market Uncertainty

With the market’s future hanging in the balance, all eyes are on the upcoming Q4 earnings season. Positive earnings reports could bolster the market’s momentum, while disappointing results may lead to further volatility. Amid this unpredictability, experts emphasize the importance of focusing on quality stocks that are poised for long-term growth. The domestic market’s outlook remains promising, supported by robust growth potential and a steady influx of retail investors.

Top Stock Picks for FY26

Ajit Mishra, Senior Vice President of Research at Religare Broking, has identified five stocks that are expected to thrive in the upcoming financial year (FY26). These selections are anticipated to yield impressive returns, making them worthy of consideration for any investment portfolio.

• Reliance Industries
  • Previous Close: ₹1,275.10
  • Target Price: ₹1,570
  • Upside Potential: 23%

Reliance Industries stands tall as one of India’s largest conglomerates, operating across diverse sectors such as petrochemicals, telecommunications, and retail. The company’s Jio segment is rapidly expanding, with increasing 4G/5G adoption and ventures into IoT, AI, and cloud services. Reliance’s ambitious investment of ₹75,000 crore in renewable energy, including a significant battery plant and electrolyser facility, is set to enhance its growth trajectory by 2025-26.

• HDFC Bank
  • Previous Close: ₹1,828.20
  • Target Price: ₹2,065
  • Upside Potential: 13%

As India’s leading private sector bank, HDFC Bank commands a substantial market share in both advances and deposits. The recent merger with HDFC is expected to unlock significant value, enhancing cross-selling opportunities and operational efficiencies. With a solid asset quality and a favorable loan mix, the bank presents an attractive long-term investment, particularly as margins are projected to recover.

• ITC
  • Previous Close: ₹409.75
  • Target Price: ₹548
  • Upside Potential: 34%

ITC boasts a diverse portfolio, spanning sectors like cigarettes, FMCG, and hotels, which mitigates sector-specific risks. The company’s strategic focus on product innovation and premium offerings has resulted in market share gains. With strong cash flows and a high dividend payout, ITC remains appealing to income-driven investors.

• HDFC Life Insurance Company
  • Previous Close: ₹685.70
  • Target Price: ₹870
  • Upside Potential: 27%

HDFC Life holds a strong position in the Indian insurance market and continues to benefit from its affiliation with HDFC Bank. The company’s impressive value of new business margins and a focus on digital growth enhance its prospects. Despite facing short-term margin pressures, HDFC Life is expected to recover as regulatory concerns ease.

• Computer Age Management Services (CAMS)
  • Previous Close: ₹3,723.35
  • Target Price: ₹4,390
  • Upside Potential: 18%

CAMS leads the market as India’s largest registrar and transfer agent for mutual funds, holding a commanding 68% market share. With extensive technological investments and a strong client base, CAMS is well-positioned to capitalize on the growth of India’s mutual fund sector. Recent mandates from major players further solidify its competitive edge.

Conclusion

As investors navigate this pivotal period, focusing on quality stocks with strong fundamentals can provide a strategic advantage. The recommendations from experts like Ajit Mishra highlight opportunities for growth in the upcoming financial year, making it essential for investors to stay informed and proactive. Embracing this insight can help you position your portfolio for long-term success in an ever-changing market landscape.