ICICI Securities has released 10 comprehensive stock recommendations for Diwali 2026 trading, featuring Kotak Mahindra Bank, Venus Pipes and Tubes, Adani Ports and SEZ, Info Edge, Zydus Lifesciences, Apollo Micro Systems, Neogen Chemicals, Saregama India, Ethos and Indian Hotels. According to NDTV Profit, the brokerage remains constructive on the market despite recent correction, citing strong Q2 FY27 earnings growth with 20%+ growth in both topline and PAT, and the underlying earnings picture remaining encouraging. ICICI Securities expects the Nifty 50 to deliver healthy double-digit returns over the next 12 months, with quality mid- and small-cap stocks offering significant opportunities as markets shift focus from liquidity to earnings delivery. The brokerage believes the recent correction needs to be viewed as a price adjustment rather than fundamental reset, with valuations having moderated meaningfully and the risk-reward equation becoming more favorable for quality businesses.
Pankaj Pandey, Head of Research at ICICI Securities, has recommended Kotak Mahindra Bank as one of his preferred stock picks for Diwali, citing its growth and improving net interest margin outlook. As per ET Now, Pandey believes both HDFC Bank and Kotak Mahindra Bank look attractive after facing leadership transition-related challenges, but Kotak Bank's numbers should be better compared to HDFC Bank. He highlighted that Kotak Mahindra Bank is the fourth-largest private sector bank in India, with a diversified loan portfolio of 39% retail and 24% corporate. The bank's 60% loan book is repo rate linked, which means margins should improve if repo rates increase, with Pandey noting that the bank's 4.3% margin may have bottomed out. Kotak Mahindra Bank is expected to deliver 20-22% growth compared to the overall banking sector's projected 14-15% growth, supported by its strong return on assets of around 2%.
Bandhan AMC's Manish Gunwani projects Indian equities could offer returns of around 12-13% in Samvat 2083, while acknowledging that the next 2-3 quarters may remain volatile. As per CNBC TV18, Gunwani expects large-cap earnings to grow in line with nominal GDP growth of around 10-11% over the medium term, though he cautions that macroeconomic challenges including crude oil prices, monsoon conditions, geopolitical developments and the growing impact of artificial intelligence could keep markets volatile. The CIO believes investors should focus on companies that can deliver sustainable growth over the next three to five years, particularly highlighting manufacturing exporters as an important investment opportunity. He sees opportunities in pharmaceuticals, textiles, automobiles and engineering sectors, while also remaining positive on private bank stocks that could deliver low double-digit annual returns over the next three to five years.
Eternal has emerged as the most popular stock, appearing in recommendations from Geojit, JM Financial, Axis Direct and Motilal Oswal Wealth Management. The Economic Times reports that L&T features in portfolios of Geojit, JM Financial, SMIFS and Motilal Oswal Wealth Management. Indian Hotels Company has been included in portfolios of Geojit, Axis Direct, ICICI Direct and SBI Securities. Kotak Neo's fundamental picks include Eternal with a target price of ₹435 (25% upside from ₹348.60), APL Apollo Tubes at ₹2,594 (20% upside from ₹2,157.10), and Hindustan Aeronautics at ₹5,305 (7% upside from ₹4,960). Kotak's technical recommendations feature Bajaj Finance with a strategy to initiate 50% position at current levels and accumulate remaining 50% near ₹850, while ICICI Bank offers fresh buying opportunities at current levels with targets of ₹1,800 above ₹1,200 support.
TVS Supply Chain Solutions leads with the highest potential upside of 116%, according to The Economic Times. The stock has a target price of ₹240 against a current market price of ₹111. Swiggy follows with an estimated upside of 104%, based on a target price of ₹375 against a CMP of ₹184. Mazagon Dock Shipbuilders has a target price of ₹2,905 compared with its CMP of ₹1,731, implying an upside potential of 68%. Olectra Greentech carries a target price of ₹1,500 against a CMP of ₹985, indicating an upside of 52%. ITC is another SMIFS recommendation with a target price of ₹360 against a CMP of ₹259, translating into a potential upside of 39%. Monarch Networth Capital's top performers include Carborundum Universal and CCL Products at 52% each, followed by Vedanta Aluminium Metal with 48%.
Venus Pipes and Tubes leads ICICI Direct's recommendations with an estimated upside of 34% based on a target price of ₹2,340 against a CMP of ₹1,750. According to NDTV Profit, Kotak Mahindra Bank is expected to deliver 20-22% advances growth, supported by the appointment of Mr Anup Saha as MD and CEO effective January 2027, addressing leadership overhang and providing longer continuity. The brokerage values the standalone bank at 2.4 times FY28 book value and maintains a Buy rating with target price of ₹540. Adani Ports and SEZ is recommended between ₹1,785-₹1,865 with a target price of ₹2,210, implying up to 19% upside. The company, handling more than 27% of total cargo volume as of FY26, has grown consolidated revenues at ~21% YoY during H1 FY27 and raised FY27 revenue guidance to ₹44,000-₹46,000 crore. Zydus Lifesciences has a target price of ₹1,480 against a CMP of ₹1,240, with the brokerage expecting upcoming product launches to offset waning momentum. Info Edge is projected to deliver 14.8% revenue CAGR over FY26-FY28 with margins improving to 44% by FY28, earning a Buy rating with target price of ₹1,530.
The combined brokerage recommendations demonstrate strategic sector diversification across banking, defence, healthcare, technology, capital goods and consumer durables. As per Monarch Networth Capital, their 14 stock picks span multiple sectors including healthcare with Aster DM Healthcare, defence with BEL, telecom with Bharti Airtel, consumer durables with Blue Star, and technology with Infosys. The portfolio also includes Vedanta Aluminium Metal (48% upside), VA Tech Wabag (23% upside), and Pricol (24% upside). This diversified approach provides investors with exposure to different market segments and growth opportunities, with SBI Securities assigning the highest upside potential in its list to Sambhv Steel at 22%. Latest developments show Angel One's eight festive-season picks spanning banks and NBFCs, auto, capital goods and defence, cement, power, consumer, healthcare, IT and telecom sectors. Bandhan AMC's Gunwani sees opportunities in premium consumption and internet platforms, believing companies with technology-oriented management teams could benefit from AI adoption through lower operating costs and more efficient customer acquisition.
