These Indian stocks could give massive returns in 2026
What's the story
The Indian stock market has been in a base-building phase for the past 18 months, according to market experts. The Nifty 50 index gave a return of 10% in 2025 while Sensex rose by up to 8%. In contrast, gold and silver have seen spectacular returns in the same period. Gold prices have surged nearly 66% to cross $4,500 per ounce, while silver has outperformed with gains of up to 171%.
Market outlook
Union Budget 2026: A catalyst for market growth
Experts believe that the upcoming Union Budget 2026 could be a major driver in pushing the Indian stock market to new heights. Last year, the budget day was marked by sharp volatility with Sensex surging over 300 points on tax relief announcements but later paring gains to slip about 130 points. The Nifty also saw gains during the session, indicating a mixed market response to budget proposals.
Expert predictions
Nifty expected to reach 28,100 ahead of Union Budget
Amit Goel, Chief Global Strategist at PAC 360, predicts that Nifty will touch 28,100 ahead of the Union Budget. He said, "I expect a spectacular year ahead for equity investors with a long-term perspective." However he cautioned that this growth won't be driven by Foreign Institutional Investors (FIIs), but Domestic Institutional Investors (DIIs). Goel also suggested focusing on consumer-centric stocks in sectors such as consumer durables and automotive.
Sector focus
Consumption-linked sectors: A powerful market driver
Seema Srivastava, Senior Research Analyst at SMC Global Securities, also sees consumption-linked sectors as a major market driver. She cited rising disposable incomes and improving rural demand as key factors. Srivastava recommended auto and consumer discretionary stocks like Uno Minda, Tata Motors Commercial Vehicles, and Mahindra & Mahindra which could benefit from recovery in passenger vehicles and rural-focused segments.
Investment opportunities
FMCG leaders and infrastructure firms to watch
FMCG leaders like Hindustan Unilever and Britannia are also on Srivastava's radar for their steady earnings visibility and defensive stability in volatile phases. She highlighted the infrastructure, defense, and capital goods companies like BEL, JSW Infra, and Larsen & Toubro with strong order books and long-term execution visibility as potential investment opportunities. These sectors could provide a buffer against market volatility while ensuring consistent returns over time.