HAL, TCS, M&M & SBI Among Nirmal Bang's Top Stock Picks In FY26

Amid expectations that policy uncertainty will likely abate gradually with tariffs settling at lower levels, brokerage firm Nirmal Bang has listed out its sectors-wise top stock picks after factoring in both micro, and macro economic factors that would set the tone for FY26.

Sector-Wise Performance Expectations And Preferred Stocks

Banking: "We expect recent fiscal and monetary easing to support consumption  revival and drive a modest recovery in loan growth NIMs may see divergent trends across banks depending on their respective business  mix," according to the brokerage house.

Buy: SBI and City Union Bank

IT - Some certainty in macro factors to play out in 2026 with enterprises  hoping to start spending toward innovation and edge. Expect  discretionary spending and short-term projects to remain muted. Gen AI  projects are now picking up with scale and likely to escalate in 2026, triggering pent-up demand as well as new scope of work.

Buy: TCS and Coforge

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Consumer: On the staples side, rural demand is expected to continue outperforming  urban demand, supported by improving farm economics, government  support measures and better income visibility in rural markets. Alco-Bev  companies remain our preferred sectoral bets, while QSRs are likely to  face higher competitive intensity and margin pressure due to the  expanding convenience-led food delivery ecosystem and rising local  competition.

Buy: United Spirits and United Breweries

Automobile & Auto Ancillaries: FY26 is emerging as a turnaround year for the auto sector, following the  moderation seen in FY25 and 1HFY26. Over the medium term, demand  recovery should be supported by pay commission revisions, GST 2.0-led  affordability, income-tax cuts, and lower interest rates, though growth is  expected to remain selective.

Buy: M&M and Eicher

Defence: India’s capabilities in defence have transitioned from being import  oriented to making significant stride toward indigenization either through  in-house R&D or Transfer of Technology with friendly nations. India aims  to further expand to a Rs3tn production and Rs500bn export target by  2029, reflecting policy support and long-term demand visibility.

Buy: Hindustan Aeronautics Limited and Solar Industries