2025 was a perplexing year for investors. On the one hand, benchmark indices were at record levels. On the other hand, the rally was not coming down the wall. Many stocks have corrected sharply, the portfolios have remained under pressure, and the returns have been very different from one sector to another. However, brokerages are expecting the market to be less foggy in 2026.
Analysts are now pinpointing stocks that could yield double, digit returns next year, as they gain more visibility on earnings, see demand stabilizing in the most important sectors and note that the technical charts are hinting at reversals. Their picks in healthcare, banking, metals and consumption are the areas where institutional money is most likely to move next.
Max Healthcare: Riding Indias Healthcare Boom
Max Healthcare is a prime example of a structural stock that has benefited from the rising healthcare demand in India. Bajaj Broking has given a BUY rating with a target of 1, 218, which means that the stock price could go up by almost 14 percent Hospitals are going positive cycle, as they have better pricing power, higher occupancy rates and more patient inflows. As the healthcare spending is growing across urban India, Max Healthcare is still the company that will benefit the most from this trend.
Eternal: Base Formation After Long Selling Pressure
After long months of selling pressure, Eternal finally looks like it is making a comeback. Bajaj Broking views the stock as a base, builder near the most important demand zones. Analysts with a target price of 323 and an upside of 14 percent see the earliest stabilizing signs that, with a positive broad market sentiment, could eventually result in a recovery rally.
Lloyds Metals & Energy: Signs of Trend Reversal
Lloyds Metals & Energy has been corrected sharply during the last six months, but the company might soon go out of tough times. Bajaj Broking is anticipating a trend reversal and has set a target of 1, 523 with an upside of 11 percent. The firms improved fundamentals and technical signals point to the risk of the downside being limited, thus making it a potential turnaround candidate for 2026.
Kotak Mahindra Bank: Breakout After Long Consolidation
Kotak Mahindra Bank has eventually broken out of the consolidation period that was prolonged. Bajaj Broking has a target of 2, 380, which means the stock has a 10 percent upside. With private banks regaining momentum and credit growth remaining healthy, Kotak's strong balance sheet and premium positioning can be the factors that make it outperform the peers in a more stable market environment.
SBI: PSU Banking Story Gets Stronger
Axis Securities continues to be bullish on State Bank of India, given the improvement in balance sheet and clear earnings visibility. SBI has an upside potential of 17 percent at ₹1,135 and remains our top pick among PSU banks. Improvement in asset quality and sustained profitability have created a strong belief in its medium-term outlook.
Varun Beverages: Demand for Beverages Remains Brisk
Varun Beverages continues to benefit from robust consumer demand. Axis Securities has given a BUY call with a target of ₹ 550, which suggests a 14 percent upside. With consumption themes regaining traction, the scale, distribution strength, and brand partnerships of the company keeps it firmly on analysts' radar for 2026.
The Big Picture for 2026
While markets will always remain volatile, brokerages believe 2026 could reward selective stock picking rather than blind index investing. These stocks reflect a mix of structural growth, recovery potential, and technical strength, key ingredients for navigating the next phase of the market cycle.
