Indian equity markets have gone through a structural shift over the past few years, with domestic institutional investors (DIIs) and retail investors increasingly cushioning the impact of foreign fund outflows. As Indian markets head into Diwali 2026, domestic brokerage firm Angel One said Nifty earnings are expected to rebound by around 15 percent in FY27, supported by capital expenditure, investment activity and a recovery in consumption.
Against this backdrop, the brokerage sees opportunities across several sectors spanning, banks and NBFCs, auto, capital goods and defence, cement, power, consumer, healthcare, IT and telecom. It's eight festive-season picks – ‘Shagun Ke Shares’ as called by the brokerage - reflect this optimism, each positioned for fresh momentum into Samvat 2083.
Diwali stock picks 2026: Eight stock recommendations by Angel One with up to 32% upside
Angel One has highlighted opportunities across eight stocks, citing earnings growth potential, improving profitability, business expansion and relatively attractive valuations.
Angel One values ICICI Bank at Rs 1,800, based on 18.8x its estimated FY29 earnings per share (EPS) of Rs 95.7, assuming mid-teens earnings growth. ICICI Bank, India's second-largest private-sector bank, with a market capitalisation of about Rs 10 lakh crore and a pan-India retail, SME and corporate franchise, raised about US$18 billion of FCNR(B) deposits through the RBI swap facility in Q2 FY27. This supported deposit growth of 27.1% and loan growth of 30%. Excluding FCNR-related deposits and loans, the respective growth rates stood at 17% and 24.1%.