Indian investors woke up today to another red screen. The Sensex has dropped more than 1,300 points in just two sessions and the Nifty 50 is down nearly 2% as worries over the India–US trade deal, possible new US tariffs on Indian rice, and caution ahead of the US Federal Reserve decision weigh on sentiment. [1]
Yet, even as the market corrects near all‑time highs, global and domestic brokerages are turning more constructive on Indian equities for 2026 , with fresh lists of “top stocks to buy” now out from Motilal Oswal, Nomura, Axis Securities and others. [2]
This article pulls together today’s news (9 December 2025) , the latest forecasts, and major broker model portfolios to outline:
- What’s happening in the Indian stock market right now
- Which sectors look best placed for 2026
- A curated list of large-cap and mid/small-cap Indian stocks that multiple institutions are backing today
- Short‑term trading ideas for active traders
- Key risks to watch before buying
Important:This article is forgeneral information and education, not personalized investment advice. Stock markets are risky. Always do your own research or consult a SEBI‑registered adviser before investing.
1. India stock market today: why are Sensex & Nifty falling?
On 9 December 2025 , the sell‑off in Indian equities entered a second day:
- The Nifty 50 is down around 0.5–1% today after Monday’s steep fall, trading below 25,800.
- The Sensex has dropped more than 700 points intraday , following a 600-point decline on Monday. In two days, it has lost over 1,300 points (~1.5%). [3]
- Mid‑ and small‑cap indices are under even more pressure, dropping about 1–1.5% today. [4]
The key drivers of today’s correction
According to Free Press Journal, Reuters and Business Standard coverage, several factors are hitting sentiment simultaneously: [5]
- India–US trade deal uncertainty : Negotiations are ongoing, but markets fear a delay in sealing the deal.
- Risk of US tariffs on Indian rice : Reports that the US administration may consider tariffs on Indian rice imports have hit rice exporters and added to broader market anxiety.
- FII selling : Foreign investors have already pulled out about $1.3 billion from Indian equities in the first six sessions of December, roughly three times November’s outflows. [6]
- Fed decision and global risk‑off : With the US Fed slated to announce its rate decision this week, global markets are cautious; Indian indices are mirroring weakness across Asia. [7]
- Profit‑booking near lifetime highs : After a sharp Nifty rally since October, investors are locking in profits, especially in autos, IT and metals, which were among today’s worst‑hit sectors. [8]
Short‑term volatility is therefore being driven far more by global cues and headlines than by domestic fundamentals—which, interestingly, are turning more positive for 2026.
2. The 2026 outlook: why brokerages are turning bullish again
Despite the recent wobble, several global and domestic houses now argue that India is entering a new up‑cycle , not exiting one.
Nomura: Nifty 50 to 29,300 by end‑2026
Nomura’s latest India Strategy report (summarized by NDTV Profit and other outlets) sets a Nifty target of 29,300 for December 2026 , implying around 12–13% upside from current levels. [9]
Key points from Nomura’s view:
- Valuation worries have eased after a reset in mid‑2025.
- India’s valuation premium vs other EMs has compressed closer to its long‑term average, improving risk‑reward.
- Earnings for FY26 are expected to recover meaningfully , driven by cyclicals like chemicals, oil & gas, cement and metals. [10]
- Nomura still advises a selective approach , favoring financials, pharma, IT services, consumer discretionary, cement, telecom, real estate and manufacturing. [11]
Motilal Oswal: “Fresh uptrend” in Nifty with diversified leadership
A widely‑shared note from Motilal Oswal Financial Services (MOFSL) says Nifty is poised for a new leg of uptrend after breaking to all‑time highs. [12]
Highlights from MOFSL’s model portfolio update:
- They see 15% YoY earnings growth in 2H FY26 after ~11% in 1H, indicating an accelerating profit cycle.
- Nifty trades at around 21.5x forward earnings , just slightly above its long‑term average of ~20.8x—pricey but not bubble territory. [13]
- Domestic institutional inflows (DIIs) are booming: MOFSL estimates record equity inflows of over $80 billion in CY25, more than in 2024. [14]
- Preferred sectors: diversified financials, IT services, automobiles, telecom, capital goods . Underweights: energy, metals, utilities. [15]
Motilal Oswal (Wealth) / TOI: constructive 2026 with broad sector leadership
In an interview carried by The Times of India , Ajay Menon (MD & CEO – Wealth Management, MOFSL) describes 2026 as “constructive” for Indian equities: [16]
- Earnings growth is expected to re‑accelerate to ~10–15% YoY over FY26–27.
- Valuations have “normalized” to around 21x one-year forward P/E , near long-term averages.
- RBI rate cuts and CRR reductions have started to release liquidity , supporting credit growth and consumption.
- Sector leadership is likely in financials, consumption (autos, travel, telecom), capital goods/industrials, digital & technology, healthcare , and manufacturing-linked themes such as EVs and electronics. [17]
The underperformance backdrop
It’s also important context that Indian equities actually underperformed other emerging markets in 2025 . MSCI India delivered low‑single‑digit returns in dollar terms versus a strong rally in MSCI EM, driven by AI‑heavy markets like China and Korea. [18]
That underperformance — alongside a valuation cooldown — is one reason why houses like Nomura and MOFSL now see room for catch‑up if earnings deliver.
3. Where to look for the “best stocks to buy now” in India
Across Nomura, Motilal Oswal, Axis Securities and others, some common sector themes emerge:
- 🏦 Banks & diversified financials (BFSI) – ICICI Bank, HDFC Bank, SBI, Bajaj Finance, Mahindra Finance and other lenders/non-bank finance companies appear repeatedly in broker top-pick lists. [19]
- 📶 Telecom & digital platforms – Bharti Airtel is a favourite, with brokerages also flagging upcoming tariff hikes as a potential earnings trigger. [20]
- 💻 IT services & digital engineering – TCS, Infosys, Coforge and other IT names are beneficiaries of a recovering global IT spending cycle and AI‑led digital adoption. [21]
- 🚗 Autos & discretionary consumption – Mahindra & Mahindra, Tata Motors, Titan, hospitality, travel and consumer brands feature prominently as tax cuts and lower rates support demand. [22]
- 🏗️ Capital goods, industrials & manufacturing – L&T, Dixon Technologies, Kaynes Technology, Inox Wind and others sit at the intersection of public capex and “China+1” manufacturing shifts. [23]
- 📡 New‑energy and renewables – Suzlon Energy, Inox Wind and related plays are part of several “high‑conviction” lists as India ramps up green energy. [24]
With that backdrop, here’s a curated list of Indian stocks that multiple institutional research houses currently highlight as buys or core holdings, grouped by style. These are not the only good stocks in the market—but they are among the most consistently mentioned names as of 9 December 2025 .
4. Best large‑cap Indian stocks to buy now (core portfolio ideas)
4.1 ICICI Bank
- Why it’s in focus: Featured in Nomura’s top 20 stock picks for the 2026 rally and in Motilal Oswal’s model portfolio of preferred large caps. [25]
- Thesis in one line: A high‑quality private‑sector bank benefiting from strong retail and SME franchises, improving asset quality and a credit up‑cycle.
- What the research says:
For long‑term investors, ICICI Bank is often treated as a core BFSI holding with a strong track record of compounding book value and earnings.
4.2 HDFC Bank
- Why it’s in focus: Named a large‑cap top pick by Axis Securities with around 16% implied upside , and forms part of many model portfolios despite near‑term integration noise. [28]
- Post‑merger story: The merger with HDFC Ltd has created a banking behemoth with an expanded liability franchise and cross‑sell opportunity, but the integration has temporarily weighed on growth metrics.
- Why brokerages still like it:
- Strong deposit franchise and proven underwriting.
- Potential for normalization of growth and margins as integration issues fade and rates remain supportive.
Investors with a 3–5 year view often see today’s consolidation as an opportunity to average into India’s leading retail bank.
4.3 State Bank of India (SBI)
- Why it’s in focus: Part of Axis Securities’ large‑cap top picks list with ~16% upside and a repeated name in MOFSL’s “preferred financials”. [29]
- Thesis: SBI offers exposure to the public‑sector banking turnaround —strong profit growth, improving asset quality and a well‑capitalized balance sheet—often at cheaper valuations than private peers.
For investors who can tolerate PSU risk and governance overhangs, SBI is frequently used as a core bet on India’s credit growth plus state-owned banks’ renaissance .
4.4 Bajaj Finance
- Why it’s in focus:
- Growth narrative: Bajaj Finance is targeting a significant increase in its share of India’s credit market by FY30, supported by cross‑sell, product expansion, and technology‑led underwriting .
- Caution: Analysts frequently flag that valuations remain rich versus historical averages , so execution must remain flawless to justify premiums. [32]
This is typically seen as a high‑quality growth compounder , but more cyclical and valuation‑sensitive than large banks.
4.5 Bharti Airtel
- Why it’s in focus:
- Part of Axis Securities’ large‑cap recommendations with ~20% upside. [33]
- Motilal Oswal flags telecom as a preferred sector; Airtel features among its top large‑cap ideas. [34]
- Business Standard reports that Indian telcos may be preparing for another tariff hike of about 15% , which would directly lift ARPUs and margins. [35]
- Why it fits the “best stocks to buy now” theme:
- Beneficiary of data growth, 5G adoption and digital services .
- Tariff hikes can provide earnings upgrades even if subscriber growth slows.
For investors seeking a play on India’s data and digital boom with relatively stable cash flows, Airtel is high on many lists.
4.6 TCS (Tata Consultancy Services)
- Why it’s in focus:
- The bigger picture:
- Ajay Menon (MOFSL Wealth) says tech and digital are set to benefit from the next leg of AI‑driven transformation and multi‑year digital adoption , supported by a friendly global rate environment by 2026. [38]
TCS is broadly seen as a defensive growth compounder : strong cash generation, high ROE, and relatively lower execution risk versus mid-tier IT.
4.7 Infosys
- Why it’s in focus:
- Thesis: While near‑term demand from US/Europe has been choppy, brokerages expect IT spending to re‑accelerate into FY26 , particularly around cloud, AI and digital transformation. Infosys gives relatively higher beta to such a recovery than TCS, but with a still‑solid balance sheet and pedigree.
Long‑term investors often own both TCS and Infosys to balance quality and cyclicality within IT.
4.8 Reliance Industries
- Why it’s in focus: Motilal Oswal continues to rate Reliance ‘Buy’ , seeing ~16% upside, with a sum‑of‑the‑parts valuation that gives substantial value to Jio, Reliance Retail and the New Energy business. [41]
- Multi-engine story:
- Energy & chemicals provide the legacy cash flows .
- Jio and Retail anchor consumer and digital growth .
- New Energy (solar, storage, hydrogen) offers long‑duration optionality and aligns with India’s decarbonization push.
Given its scale and diversification, Reliance is often treated as a “market proxy” in India, though it is currently underweight in some broker model portfolios relative to banks/IT.
5. High‑conviction mid‑ & small‑cap ideas (higher risk, higher reward)
Mid‑ and small‑caps have been more volatile in the recent sell‑off, but they also feature heavily in broker lists of high‑conviction ideas for 2025–26 . These names are generally higher risk , less liquid and more sensitive to earnings disappointments.
5.1 Jindal Stainless
- Why it’s in focus:
- Thesis: Beneficiary of demand from infrastructure, automobiles and specialty steel use cases. Technical analysts highlight strong price momentum and a breakout on the charts.
This is a classic “fundamental + technical” overlap candidate—but also more cyclical.
5.2 Dixon Technologies
- Why it’s in focus:
- Theme: A leading contract manufacturer (EMS) benefiting from PLI schemes, import substitution and global supply chain diversification .
Investors see Dixon as a way to play “Make in India” plus electronics manufacturing , albeit at valuations that require steady execution.
5.3 Suzlon Energy & Inox Wind
- Why they’re in focus:
- Theme: As India ramps up wind and renewable capacity , these companies can benefit from rising order books and operating leverage.
However, both have checked histories (debt, execution issues). They are often treated as high‑beta satellite positions , not core holdings.
5.4 Coforge
- Why it’s in focus: Axis Direct’s latest research reiterates a BUY on Coforge with about 18% upside to its target price. [48]
- Thesis: A mid‑tier IT services player with stronger growth in digital, cloud and data segments, and higher sensitivity to any cyclical recovery in global tech spending.
Coforge often appeals to investors who want more growth torque than large‑cap IT , but with somewhat higher volatility.
5.5 Kaynes Technology
- Why it’s in focus:
- Theme: Another electronics‑manufacturing and EMS play tied to India’s manufacturing scale‑up and localization efforts .
As with Dixon, you’re betting on multi‑year growth in high‑value electronics production in India, but at valuations that require patience and careful sizing.
6. Short‑term trading ideas for 9 December 2025 (only for active traders)
For traders focused on days to weeks rather than years, several research houses and technical analysts have flagged momentum setups today. These are not long‑term “buy and forget” ideas.
6.1 Breakout stocks highlighted by Sumeet Bagadia (LiveMint)
Choice Broking’s Sumeet Bagadia has recommended five breakout trades for today: Latent View Analytics, Cantabil Retail, Gujarat Ambuja Exports, Venus Remedies and Jindal Stainless . Each is accompanied by tight stop‑loss levels and modest upside targets, typically in the high‑single‑digit range. [51]
These are pure technical setups ; fundamentals may or may not justify long‑term holding.
6.2 Intraday ideas from LiveMint’s Vaishali Parekh
Vaishali Parekh has suggested intraday trades in Jindal Stainless, Dolat Algotech, and Hindustan Oil Exploration , again with defined entry, stop‑loss and target levels for intraday or very short‑term trades. [52]
6.3 NeoTrader / Raja Venkatraman’s ideas
NeoTrader’s Raja Venkatraman has flagged PB Fintech as a multiday buy above a specific trigger price, alongside other short‑term ideas, in his daily column for 9 December. [53]
If you’re a long‑term investor, treat these assentiment indicatorsrather than “must‑buy” stocks. The same names can fall sharply if broader risk‑off continues.
7. How to build your own “best stocks to buy now” list
Instead of blindly copying any list (including this one), use the current research environment to build a portfolio that fits your goals .
Here’s a practical framework:
- Define your time horizon and risk tolerance
- Long‑term (5–10 years) : Focus on large‑cap banks, quality IT, telecom and select consumer names.
- Medium‑term (2–3 years) : Add a measured allocation to mid‑caps in manufacturing, capital goods and renewables.
- Short‑term (days–weeks) : Only if you fully understand technical analysis, risk management and derivatives .
- Anchor around 5–10 core stocks
From the large‑cap group above, many investors might choose a core basket like:- ICICI Bank / HDFC Bank / SBI (BFSI core)
- TCS + Infosys (IT core)
- Bharti Airtel (telecom/data)
- Reliance (diversified India proxy)
- Add 3–5 “growth satellites”
Depending on risk appetite, consider smaller allocations to names like Bajaj Finance, Dixon, Coforge, Kaynes, Jindal Stainless, Suzlon or Inox Wind , understanding that drawdowns can be large and liquidity can dry up in corrections. - Check evaluations and earnings visibility
- Compare P/E, P/B, ROE and growth with peers.
- Read at least one detailed research note or concall transcript per stock wherever possible.
- Diversify across themes, not just tickers
Ensure you’re not over‑concentrated in one story (only banks, only renewables, only IT). The broker lists above deliberately spread exposure across financials, consumption, manufacturing, tech and energy . [54] - Have a clear exit plan
- For long‑term holdings, define conditions under which you’ll exit (eg, structural deterioration in ROE , persistent governance issues, or multi‑quarter earnings misses).
- For trading ideas, respect pre‑decided stop‑losses and avoid averaging down blindly.
8. Key risks before you buy any of these stocks
Before you hit the “Buy” button just because a stock is on a “best to buy now” article, consider the main risks flagged by Nomura, Motilal Oswal, TOI and others: [55]
- Geopolitics & trade
- A breakdown or prolonged delay in India–US trade talks, or tariffs (like the potential rice tariffs now in focus), could hurt export-oriented sectors and market sentiment.
- Global interest rates
- While markets expect further Fed rate cuts in 2026 , a renewed inflation spike or slower‑than‑expected easing could keep global risk appetite fragile. [56]
- Valuation risk, especially in mid/small caps
- Even after 2025’s underperformance, Indian equities still trade at a premium to other EMs on P/E multiples.
- Within mid‑ and small‑caps, parts of the market still carry above‑average valuations , making them vulnerable to earnings disappointments.
- Earnings execution
- The bullish 2026 story remains on 10–15% earnings CAGR through FY27. If capex revival or consumption recovery underwhelm, earnings could miss expectations. [57]
- Liquidity & behavioral risk
- Domestic investors (SIPs and DIIs) are now the primary stabilizing force in Indian markets. If sentiment among retail investors turns sharply, the impact on mid/small‑caps could be significant. [58]
9. So, are Indian stocks a buy right now?
Putting it all together:
- Near‑term: Markets are in a short‑term correction triggered by global risk‑off, Fed uncertainty and India–US trade worries. Volatility may remain elevated around macro events. [59]
- Medium‑ to long‑term (through 2026): Most major brokerages now see India entering a constructive phase , with:
- Earnings growth accelerating into double digits
- Valuations near long‑term averages rather than extreme highs
- Strong domestic liquidity and potential return of foreign flows if global tech euphoria cools. [60]
From an investor’s perspective, this kind of pullback near all‑time highs often becomes a stock‑specific opportunity —especially in quality large caps like ICICI Bank, HDFC Bank, SBI, Bharti Airtel, TCS, Infosys and Reliance, which multiple institutions are recommending today.
If you choose to act now:
- Prioritize quality and diversification over chasing the hottest momentum names.
- Size positions conservatively, especially in mid/small‑caps and renewables .
- Keep a multi‑year horizon for core holdings instead of trying to perfectly time the bottom of this correction.
References
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