Additionally, the brokerage firm has highlighted ICICI Bank, Bharti Airtel, IRCTC and Samhi Hotels among 17 of their top large, small and midcap picks.
“We believe that domestic-oriented sectors like Domestic Pharma, select staples, Banks, capital goods, defence, and power will outperform in the near term,” the report said.
Meanwhile, PL Capital’s Bull case scenario projects a rally in Nifty up to 28,957, up from an earlier estimate of 27,590.
According to PL Capital, Indian markets have demonstrated a lot of resilience in the past few months despite big events and disruptions around global tariff wars, Israel-Iran war and operation Sindoor.
While acknowledging that FIIs remain net sellers year-to-date, despite turning net buyers in recent weeks, the firm notes that markets appear to have adapted to global volatility and adverse geopolitical developments. Investors seem to be factoring in the unpredictability of U.S. tariff policies, fluctuating crude prices, and shifting global political dynamics.PL Capital also points out that the “India-US trade deal remains a WIP with issues around agriculture, dairy, GM crops and labour-intensive industries, with no easy solution to these long-pending issues.”The firm highlights that the first quarter of the fiscal year has also seen the front-ending of the government Capex with a growth of 61% and 39% in April and May, indicating a momentum in ordering and a significant pick-up in defense expenditure.
Further, PL Capital notes that the “RBI has cut the repo rate by 100bps and has plans to reduce CRR by 100bps in a gradual manner.” This strategic move, according to PL Capital, will help improve the liquidity in the system and improve credit growth, which was just 9.5% in 1Q26.
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All eyes rest on the revival of consumption demand, as stated by PL Capital.
This revival is expected to be buoyed by various factors like:
- Normal monsoons
- Multi-year low food inflation
- Cut in interest rates and CRR, and
- The benefits of tax cuts in the FY26 budget.
PL Capital noted that 1Q26 has shown a mixed trend with stable demand and no major acceleration. Looking ahead, the brokerage firm concludes that the upcoming festival season and spatial distribution of monsoons hold the key to broad-based demand revival.
With this, PL Capital has highlighted the following stocks as its top picks:
Large Cap Stocks
ABB India, Apollo Hospitals Enterprise, Bharti Airtel, Hindustan Aeronautics, ICICI Bank, InterGlobe Aviation, ITC, Kotak Mahindra Bank, Lupin, Titan Company.
Mid/Small Cap Stocks
Astral Ltd., Crompton Greaves Consumer Electricals, Ingersoll-Rand (India), Indian Railway Catering and Tourism Corporation (IRCTC), KEI Industries, Samhi Hotels, Triveni Turbine.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
