Swiggy, Infosys among 17 stocks in BNP Paribas' top buy ideas for 2026. Check list here - Earnings Led Optimism

BNP Paribas expects 2026 to be a stronger year for Indian equities, with the Nifty 50 seen delivering mid-teens returns and a December 2026 target of 29,500, driven largely by earnings growth rather than valuation re-rating. The brokerage is more constructive on large caps and domestic-oriented sectors such as banks, autos, telecom and consumer staples, citing policy support, improving earnings visibility and resilient domestic flows. Here are the brokerage's top buy ideas for 2026: BNP Paribas lists Maruti Suzuki and Mahindra & Mahindra among its top buy ideas, citing a favourable outlook for passenger vehicle makers following GST cuts that have lowered on-road prices and boosted volumes. The brokerage expects operating leverage and lower discounting to support margin expansion through FY27. It has set a target price of Rs 19,130 for Maruti Suzuki and Rs 4,120 for Mahindra & Mahindra.

Infosys is BNP Paribas’ preferred large-cap IT services pick, with the brokerage viewing the current slowdown as cyclical and expecting a recovery from March 2026 as global macro conditions stabilise. BNP Paribas has a target price of Rs 1,900 on Infosys.

BNP Paribas has turned positive on consumer staples and internet-linked consumption plays, naming Britannia Industries and Swiggy as top ideas. For Britannia, it expects a recovery in volumes and margins aided by GST cuts, a favourable earnings base and improving consumption trends. Swiggy features as a preferred discretionary and internet play, with BNP Paribas setting target prices of Rs 6,950 for Britannia and Rs 500 for Swiggy.

The brokerage remains constructive on private sector banks and life insurance, citing improving credit growth, supportive liquidity conditions and balance sheet strength. It expects a strong earnings rebound for banks in FY27 and continued momentum in insurance driven by ULIP demand and favourable yield dynamics. BNP Paribas’ target prices are Rs 1,460 for HDFC Bank, Rs 1,990 for ICICI Bank, Rs 1,660 for Axis Bank and Rs 2,730 for SBI Life Insurance.

Reliance Industries is among BNP Paribas’ top telecom-linked and diversified plays, with the brokerage highlighting improving free cash flows as capex intensity moderates and earnings growth supported by tariff hikes. It also flags the potential industry impact of a future Jio Platforms listing. BNP Paribas has set a target price of Rs 1,785 for Reliance Industries.

Titan features in BNP Paribas’ preferred consumer discretionary list, with the brokerage citing steady growth prospects supported by improving consumption trends. It expects earnings momentum to remain healthy over FY26 to FY28, aided by operating leverage. BNP Paribas has set a target price of Rs 4,240 for Titan.

Among mid-cap and industrial plays, BNP Paribas highlights Doms Industries, Amber Enterprises and JK Cement. It likes Doms for strong growth visibility within consumer staples, Amber for its positioning in EMS and component manufacturing as production normalises, and JK Cement as a preferred large-cap consolidator despite near-term pressure in cement pricing. Target prices are Rs 3,200 for Doms Industries, Rs 8,550 for Amber Enterprises and Rs 6,650 for JK Cement.

BNP Paribas prefers selective healthcare names, favouring hospitals over pharmaceuticals but still naming Aurobindo Pharma as its top pharma pick. It expects Aster DM Healthcare to deliver steady growth with margin expansion supported by brownfield expansions, while pharma export prospects improve. The brokerage has target prices of Rs 1,410 for Aurobindo Pharma and Rs 850 for Aster DM Healthcare.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)