Best Stocks to Buy Now in India (10 December 2025): Analyst-Backed Ideas for 2026 and Beyond

India’s stock market is pausing for breath just below record highs, but the research desks are busy rolling out fresh “buy” lists for 2026. On Tuesday, the Nifty 50 closed at 25,839.65 and the Sensex at 84,666.28, both down about half a percent ahead of the US Fed meeting. ^[1]

Yet the bigger picture still looks constructive. The Nifty trades on a price‑to‑earnings (P/E) multiple of about 22.5, close to the top of its one‑year range, signalling that earnings growth – not multiple expansion – now has to do the heavy lifting. ^[2] Citi Research expects the index to climb to 28,500 by end‑2026, implying roughly 10% upside from here, powered by recovering consumption and “goldilocks” conditions of strong growth and tame inflation. ^[3]

At the same time, the Asian Development Bank has upgraded its forecasts for developing Asia as a whole, citing India’s 8.2% fiscal‑Q2 GDP growth as a key positive surprise. ^[4]

Against this backdrop, here’s a news‑driven, SEO‑friendly guide to the best stocks to buy now in India – built from today’s and very recent research notes and market coverage. This is information, not personalised investment advice; treat it as a starting point for your own due diligence.

1. How the Street Sees the Indian Market on 10 December 2025

Large caps favoured; small caps under scrutiny

Citi, HSBC, J.P. Morgan and Nomura all broadly expect Indian equities to deliver low double‑digit earnings growth and around 10% index gains through 2026, even after a choppy 2025. ^[5] Banks, telecom, autos, healthcare and defence are the most commonly overweighted sectors, while IT services and consumer staples are frequent underweights due to rich valuations. ^[6]

On the other hand, small caps are flashing amber. After surging about 93% over 2023–24, India’s Nifty small‑cap index is down roughly 9% in 2025, and still trades at a P/E near 25x, versus a long‑term average around 16–17x. ^[7] Analysts warn that elevated valuations and thin liquidity could mean another tough year for many smaller names unless earnings accelerate.

Domestic macro still a strong tailwind

The ADB now projects developing Asia’s growth at 5.1% in 2025, up from 4.8%, and South Asia at 6.5%, helped by India’s stronger‑than‑expected expansion. ^[8] On the policy side, Indian broker Axis Securities sees Nifty earnings growing at about 13% CAGR through FY28, and puts a base‑case Nifty 50 target of 28,100 and a bull‑case of 29,500 for December 2026. ^[9]

Put simply: the macro and earnings story is supportive, but index‑level valuations are no longer cheap. Stock selection matters much more than it did two years ago.

2. Today’s Short‑Term Trading Ideas (10 December 2025)

If you’re a trader rather than a long‑term investor, several fresh intraday and short‑term calls hit the wires this morning:

Breakout trades: Choice Broking’s Sumeet Bagadia has recommended Sharda Cropchem, Sandhar Technologies, Indo Borax & Chemicals, Jamna Auto Industries and Ashapura Minechem as technical breakout buys for today with tight stop‑losses. ^[10]
Nifty trading guide: Business Standard’s trading note for 10 December flags IDFC First Bank and Sansera Engineering as short‑term buys based on bullish candlestick formations. ^[11]
Momentum mid‑caps: Torus Digital highlights Kirloskar Brothers, Relaxo Footwears, Bata India, Jyothy Labs and IRCTC as buy candidates amid choppy index‑level action. ^[12]
Day trades from Times of India: Anand Rathi’s Mehul Kothari lists Hindustan Copper, Hindustan Petroleum and Shaily Engineering Plastics among top intraday ideas for 10 December. ^[13]

Those are high‑velocity trades. The rest of this article focuses on multi‑quarter ideas that big brokerages and research houses are pitching as the best stocks to buy now in India for 2026 and beyond.

3. Best Stocks to Buy Now in India (Analyst‑Backed, Medium‑ to Long‑Term)

A. Banking and Financial Powerhouses

1. HDFC Bank: Core large‑cap compounder at a reasonable valuation

Axis Securities has put HDFC Bank at the top of its large‑cap buy list for December, with a target price of ₹1,170, implying around 16–17% upside from roughly ₹1,000. ^[14]

The stock trades at about 21x trailing earnings and comfortably below its recent peak, even as India’s credit cycle and retail loan growth remain supportive. ^[15]
Brokers like Citi remain overweight on banks overall, betting on improving asset quality and strong GDP growth. ^[16]

For investors building a core India portfolio, HDFC Bank remains a go‑to name – though returns may be steadier than spectacular from here.

2. ICICI Bank: High‑ROE private bank still on long‑term “buy” lists

Research house Samco includes ICICI Bank among its 20 best long‑term shares for December 2025, highlighting its digital strengths, strong CASA base and high profitability. ^[17]

ICICI Bank sports an ROE around 18–19% and trades near 18–19x earnings, slightly cheaper than HDFC Bank. ^[18]
With diversified retail and corporate books and a robust capital position, it’s a classic “growth at a reasonable price” play within Indian financials.

3. Axis Bank: Jefferies’ preferred large private bank

International brokerage Jefferies has added Axis Bank to its revamped India model portfolio while trimming exposure to ICICI Bank, citing a 20–25% valuation discount versus peers, improving growth and benign asset quality trends. ^[19]

Nifty 50 data show Axis trading at roughly 15x trailing earnings, cheaper than most large private banks on the index. ^[20]
As reforms and credit growth play out, Jefferies sees scope for both earnings catch‑up and re‑rating.

For investors comfortable with a little more cyclicality than HDFC/ICICI, Axis Bank offers higher potential upside.

4. State Bank of India (SBI): PSU heavyweight still in favour

Axis Securities’ December top‑picks basket includes SBI among its preferred large caps, reflecting structural improvements in PSU bank balance sheets and credit growth. ^[21]

PSU banks have been among the strongest performers over the last quarter, as shown in Axis’s sector scorecards. ^[22]
With improving return ratios and still‑reasonable valuations versus private peers, SBI remains a leveraged play on the India capex and housing cycle.

5. Bajaj Finance: High‑growth NBFC, but not for the faint‑hearted

Bajaj Finance shows up in both Axis’s large‑cap list and Samco’s long‑term model portfolio. ^[23]

Samco highlights an operating profit margin upwards of 65% and strong ROE, but also notes a relatively high debt‑equity ratio. ^[24]
On Nifty data, the stock trades at around 34x earnings, a sizeable premium to the financial sector. ^[25]

For aggressive investors with a long horizon, Bajaj Finance remains a powerful compounding story – but volatility and valuation risk are real.

6. AU Small Finance Bank: From niche lender to market darling

If there is a breakout bank story for 2025, it’s AU Small Finance Bank (AU SFB):

The stock has delivered roughly 60–65% returns over the past year, making it the top performer in the Nifty Bank index. ^[26]
Jefferies recently initiated coverage with a Buy rating and ₹910 target, seeing about 19% upside, and highlighted the bank’s shift from small finance to universal bank status as a structural earnings driver. ^[27]
The Ministry of Finance has just raised the foreign investment limit from 49% to 74%, a move expected to attract more global capital and keep the stock in focus. ^[28]

Valuation is no longer cheap, but AU SFB sits at the intersection of financial deepening, tech‑led banking and regulatory tailwinds – a potent mix for long‑term investors willing to stomach volatility.

B. Consumption and Retail Plays

7. Avenue Supermarts (DMart): Structural retail growth story

Axis Securities’ December list names Avenue Supermarts, operator of DMart, as one of its key large‑cap picks. ^[29]

Axis assigns a target of around ₹4,960, highlighting strong store expansion, efficient inventory management and a dominant position in value retail. ^[30]
The stock trades at a premium multiple, reflecting expectations of long‑run compounding driven by formalisation of Indian retail and rising urban consumption.

Investors should be comfortable paying up for quality; this is not a bargain, but it is a franchise many institutions are willing to own through cycles.

8. ITC: Defensive FMCG and dividend anchor

Samco’s long‑term list devotes an extended section to ITC, emphasising its diversified FMCG portfolio, strong margins and debt‑free balance sheet. ^[31]

The stock trades at around 14–15x trailing earnings, noticeably below consumer‑staples peers like Hindustan Unilever that command near‑50x P/E. ^[32]
With ROE close to 29% and generous dividend payouts, ITC offers a blend of defensive stability and moderate growth, plus an ongoing pivot toward non‑tobacco FMCG.

For investors wary of volatility but still wanting equity exposure, ITC is one of the more reasonably valued quality names in the Nifty.

C. Telecom and Digital Infrastructure

9. Bharti Airtel: High‑quality leader with rich valuation

Bharti Airtel sits prominently in Axis’s large‑cap top‑picks list with a target price of ₹2,530, about 20–21% above the current level near ₹2,080. ^[33]

Broker consensus on Mint data shows the average rating is “Buy,” supported by strong ARPU trends, 5G rollout and Africa growth. ^[34]
However, independent valuation models flag Bharti as overvalued versus intrinsic value estimates, suggesting caution on entry price. ^[35]

In short: Bharti Airtel remains one of the clearest ways to play India’s data and digital‑consumption boom, but investors should be disciplined on position size given stretched valuations.

D. IT and Digital Services

10. Tata Consultancy Services (TCS): Blue‑chip IT despite sector underweight

Even as several global houses stay underweight Indian IT overall, Samco still ranks TCS among the top 10 long‑term stocks in India. ^[36]

The firm underscores TCS’s operating profit margin near 29%, ROE above 60% and debt‑free balance sheet as key advantages. ^[37]
With a P/E around 25x – a premium to the market, but in line with its own history – TCS offers steady compounding if global tech spending and AI‑driven digital transformation remain on track. ^[38]

Investors who want some IT exposure but are wary of smaller, more volatile names may prefer TCS as a “quality core” holding.

E. Manufacturing, Industrials and Defence

11. Hindustan Aeronautics (HAL): Defence champion with growth runway

Hindustan Aeronautics features in Samco’s list of 20 best long‑term shares, backed by strong order visibility in defence aviation and a debt‑free balance sheet. ^[39]

The stock trades at roughly 34x earnings, reflecting robust growth expectations and high ROE above 26%. ^[40]
Recent fundamental analyses emphasise that while valuations are rich, HAL still screens well on earnings momentum and strategic importance to India’s defence plans. ^[41]

HAL suits investors comfortable paying a growth multiple for a quasi‑monopoly defence asset.

12. APL Apollo Tubes: Structural steel play on infra and housing

Among mid‑caps, APL Apollo Tubes appears repeatedly in Axis Securities’ preferred lists, including a recent note flagging it as a top mid‑cap with attractive upside. ^[42]

Economic Times summaries highlight a target price around ₹2,100, implying double‑digit upside, supported by strong return ratios and leadership in structural steel tubes. ^[43]
As government and private capex in housing and infrastructure stay elevated, demand for branded structural steel products should remain healthy.

APL Apollo offers exposure to the physical‑economy build‑out without taking direct project‑execution risk.

13. Polycab India: Cables giant – strong fundamentals, sky‑high valuation

Another Samco favourite is Polycab India, a leader in wires and cables. ^[44]

Fundamental metrics look solid: high ROE, low leverage and strong growth in both B2B and B2C segments. ^[45]
Valuation, however, is eye‑watering. One intrinsic‑value model pegs Polycab as trading at a 236% premium to its estimated fair value as of 9 December. ^[46]

For many investors, that makes Polycab more of a watch‑list name, to be bought on deep corrections rather than chased at any price.

F. Energy and Utilities

14. JSW Energy: Jefferies’ high‑conviction power story

In its latest portfolio shake‑up, Jefferies has added JSW Energy, forecasting a roughly 42% EBITDA CAGR between FY25 and FY28, driven by capacity additions and recovering power demand. ^[47]

The brokerage notes that the stock trades around 11–12x forward EV/EBITDA, well below the 15–20x range it enjoyed during a previous capacity‑doubling phase, suggesting potential re‑rating. ^[48]

JSW Energy offers a focused play on India’s power and renewables build‑out, but as always with utilities, regulation and project‑execution risk must be watched.

15. Bharat Petroleum Corporation (BPCL): Refining upside with capital‑return potential

Jefferies has also added BPCL to its India model portfolio, arguing that refining margins and valuations both look supportive. ^[49]

The firm sees scope for earnings upgrades as capacity additions and marketing margins stabilise, while the stock still trades at a discount to global refining peers on EV/EBITDA and price‑to‑book metrics. ^[50]

BPCL can suit investors seeking value within energy, with the possibility of special dividends or buybacks if government divestment or asset monetisation progresses.

G. Real Estate and Property

16. Godrej Properties: High‑quality property bet as housing cycle heals

Property is one of the sectors where Jefferies has turned more bullish, and Godrej Properties is a key new addition to its model portfolio. ^[51]

The brokerage notes strong pre‑sales momentum, a robust project pipeline and the company’s positioning in premium urban housing. ^[52]
With interest‑rate expectations easing and urban incomes rising, Godrej is a way to play the formal, branded developer theme rather than more leveraged, unorganised players.

Valuation is not cheap, but quality, governance and brand strength justify some of the premium.

4. How to Use This List (Without Losing Sleep)

Match picks to your risk profile.
Banks like HDFC, ICICI or SBI and defensives like ITC are far less volatile than small‑cap cyclicals or leveraged NBFCs like Bajaj Finance.
Beware of hot small caps.
With the small‑cap index down but still richly valued, 2026 could remain bumpy for many “story stocks.” ^[53] Stick to companies with strong balance sheets and consistent cash flows.
Diversify across sectors.
Citi and Jefferies are overweight banks, telecom, autos, healthcare, defence and property – but underweight IT and staples due to valuations. ^[54] Your own portfolio doesn’t need to mirror them, but concentration in any one theme boosts risk.
Have a time horizon of at least 3–5 years.
Samco’s “20 best long‑term stocks” framework explicitly assumes multi‑year holding periods. ^[55] Short‑term market noise – US Fed moves, election headlines, IPO flow – can easily overshadow fundamentals in any single quarter.
Do your own homework (or talk to an adviser).
This article aggregates today’s news, broker notes and valuation data. It cannot factor in your goals, tax situation or risk tolerance. Treat every “best stocks to buy now” list as a screening tool, not a final answer.

References