Which Stocks Are Likely to Perform Well in 2026?
In 2026, the stocks likely to perform well are those belonging to sectors that power India’s long-term growth such as Banking, Renewable Energy and Digital Technology. Predicting the future of the stock market is never 100% certain but at Motilal Oswal we look for Quality and Growth to identify companies that have the strength to lead the market even when global conditions change.
What Makes a Stock a Winner in 2026?
Before looking at specific sectors it is important to understand what a well-performing stock looks like. At Motilal Oswal we use our signature QGLP (Quality Growth Longevity and Price) formula.
A winning stock in 2026 typically has:
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Strong Management: Leaders who have a clear plan for the future.
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Low Debt: Companies that don't owe too much money to banks.
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Rising Profits: Businesses that are continuously making more money than they did last FY year.
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A Moat: Something that makes it hard for competitors to steal their customers.
Top Sectors to Watch in 2026
The Indian economy is evolving. While traditional businesses are still strong, new industries are starting to take the lead. Here are the sectors we believe show the most promise this year.
1. The Banking and Financial Sector (The Backbone)
Banks are the heart of the Indian economy. As more people take home loans, car loans and business loans, big banks like HDFC Bank or ICICI Bank tend to grow.
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Why now? In 2026 many Indian banks will have very clean balance sheets (they have cleared old bad loans).
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What to look for: Look for banks that are investing heavily in mobile apps and digital payments as that is where the new generation of customers is going.
2. Renewable Energy and Green Power
India is moving fast toward green energy. Companies involved in solar power wind energy and Electric Vehicle (EV) charging are seeing massive support from the government.
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The Trend: Major groups like Tata Power or Reliance Industries are spending billions of rupees to shift from old energy to green energy.
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Why it matters: As petrol prices stay high and environmental rules get stricter, green energy stocks are likely to stay in demand for a long time.
3. Consumption and Retail (The Indian Consumer)
India has a huge young population that loves to shop. Whether it is buying the latest smartphone high-end sneakers or even premium biscuits Consumer stocks are a steady bet.
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The Shift: We are seeing a move toward Premiumization. This means Indians are now willing to pay more for better quality.
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Key Players: Companies like Titan (jewelry and watches) or Hindustan Unilever (daily essentials) benefit when people have more money in their pockets.
4. Digital Products and AI
In 2026 Artificial Intelligence (AI) is no longer just a buzzword, it is a tool that companies are using to save money and work faster.
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IT Services: Indian IT giants like TCS and Infosys are helping global companies set up their AI systems.
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New Age Tech: Keep an eye on Indian startups that have recently become profitable. These tech-first companies are changing how we order food, book doctors, and travel.
How to Pick These Stocks Using Motilal Oswal Tools
You don't have to guess which stocks will do well. At Motilal Oswal we provide you with the data and Solid Advice to make informed choices.
The Research360 App
Our Research360 app is designed to simplify stock picking. It scores stocks based on their financial health. If you see a stock with a high Quality Score and a high Growth Score it is a candidate for your watchlist.
Model Portfolios
If you are unsure about picking individual names you can look at our Model Portfolios. These are groups of stocks selected by our experts that are expected to outperform the market over the next 12 to 18 months.
Expert Advice
Every Motilal Oswal customer has access to research reports. Instead of following tips on social media you can read a 2-page report written by a professional analyst who has studied the company’s books for years.
3 Simple Rules for Investing in 2026
Even if you find a great stock, how you invest matters just as much as what you buy.
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Don't Put All Your Eggs in One Basket: Even if you love the Energy sector don't put 100% of your money there. Spread it across 3 or 4 different sectors to stay safe.
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Think Long Term: A stock that is likely to perform well in 2026 might have a few bad weeks or months. Don't panic. Give the company time to show its results.
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Check the Price: Even a great company can be a bad investment if you buy it when the price is too high. Use our valuation tools to see if a stock is Fairly Priced or Expensive.
Comparison of Sector Potential in 2026
Summary Checklist for Your 2026 Portfolio
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Diversify: I have stocks from at least 3 different industries.
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Quality Check: I have checked that these companies have low debt.
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Use Research: I have read the Motilal Oswal report on these stocks.
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Stay Calm: I am prepared to hold these stocks even if the market dips.
Open Demat Account and Begin Your Investment Journey!
Open Demat Account and Begin Your Investment Journey!