Stocks to buy for the long term: The Indian stock market extended gains for the second consecutive month in July, supported by FPI buying, healthy Q1 earnings, and lower oil prices, despite volatility.
The benchmark index Nifty 50 gained 2.2% in July. Broader markets also rallied; the Nifty Midcap 100 rose by 1.8%, while the Nifty Smallcap 100 outperformed, climbing 2.5%.
For the near term, geopolitical developments, movement of oil prices, and foreign capital flow will remain the key triggers that will dictate market trends.
Rahul Ghose, Founder and CEO of Octanom Tech and Hedged.in, believes the Nifty may remain bullish for the rest of the calendar year, and end 2026 around the 26,800-27,000 range.
However, Ghose added that getting past that level will need crude prices to be stable around $80-85 per barrel, corporate earnings continuing the same momentum, and the reversal of FII outflows.
Further, Ghose underscored that a monthly closing breakout above 26,326 opens up a rectangular pattern target of 30,900. However, that kind of decisive breakout looks more like an early-2027 story than something that plays out in the next few months.
The single biggest overhang right now is the US-Iran escalation and its effects on crude- the variable everyone should be watching more than any domestic data point.
“If crude eventually settles in the $80-85 band, it is a manageable input for India Inc. and the current account. My own sense, based on how quickly similar flare-ups have de-escalated in the past once diplomatic channels reopen, is that a sustained move above $100 is unlikely to hold – but until that premium unwinds, it caps upside and keeps volatility elevated,” said Ghose.
“Healthy corporate earnings, inflation and interest rates that remain largely under control, and a capex cycle that’s genuinely reviving should limit the downside. FII flows have also been more measured than volatile through this phase, and DII buying continues to provide a steady bid on declines – that combination is usually what keeps corrections shallow rather than disorderly,” Ghose added.
Market sentiment is improving and is expected to remain positive for the near term. However, it is not a market to be aggressively bullish or bearish on for the rest of the year.
It is a market to be selective in.
“Accumulate quality on dips, don’t chase strength, and let the 26,300-26,326 zone tell you when sentiment genuinely shifts from range-trading to trending. Stock and sector selection, not index direction, is where the real work needs to happen through the second half of 2026,” said Ghose.
Stock picks for the medium term
Rahul Ghose highlights the following 10 stocks for the rest of 2026. Do you have any?
Hero MotoCorp | Previous close: ₹5,386 | Target price: ₹6,200
“Rural income recovery and a normal monsoon should support Hero MotoCorp’s two-wheeler volumes into the festive season, while the Vida EV push gives it an option on the electrification shift without the balance sheet risk of a pure-play,” said Ghose.
Larsen and Toubro | Previous close: ₹3,938.90 | Target price: ₹4,300
Ghose said Larsen and Toubro is the purest large-cap play on the capex and infrastructure cycle, with a strong order book and diversified exposure across domestic and international projects.
Info Edge (India) | Previous close: ₹1,226.25 | Target price: ₹1,850
Ghose said Info Edge (Naukri) franchise benefits directly from a hiring recovery as capex-led growth translates into jobs, and its listed and unlisted investment portfolio (Zomato/Eternal being the marquee one) continues to be a value unlock story.
Divi’s Laboratories | Previous close: ₹8,056 | Target price: ₹8,300
Ghose pointed out that Divi’s Laboratories is a CDMO leader, riding the China+1 pharma supply chain shift, with new capacity at Kakinada scaling up. The company has steady earnings visibility with limited downside.
Bajaj Finserv | Previous close: ₹2,029.10 | Target price: ₹2,250
Ghose highlighted that Bajaj Finserv is a diversified financial services company across lending, life and general insurance. Ghose believes that as rates stay benign and credit growth picks up, the holding company discount should narrow.
Titan Company | Previous close: ₹4,875.20 | Target prices: ₹5,064 and ₹5,071
Ghose said Titan is a structural consumption story in jewellery and wearables, with margin discipline improving even through gold price volatility. Demand for the festive season and weddings is expected to play into the year-end.
Dixon Technologies (India) | Previous close: ₹14,049 | Target price: ₹16,500
As per Ghose, the PLI-led electronics manufacturing theme has legs, and Dixon remains the best proxy for it. Recent correction from highs offers a better entry into a multi-year order book story.
BHEL | Previous close: ₹407 | Target prices: ₹520 and ₹537
“Power capex revival, thermal order inflows, and a re-rating in PSU capital goods names make BHEL a tactical accumulate-on-dips story rather than a buy-at-any- price one. Execution risk on large orders is real, so size positions accordingly,” said Ghose.
BSE | Previous close: ₹3,646.20 | Target price: ₹4,148
“Derivatives volume growth and market share gains in the options segment remain intact, though regulatory noise around F&O expiries and lot sizes will keep the BSE stock swingy. Buy the dips created by regulatory headlines, not the spikes on volume data,” said Ghose.
Eternal | Previous close: ₹302.45 | Target price: ₹380
Ghose highlighted that Eternal’s Blinkit quick-commerce scale-up is now translating into margin improvement alongside food delivery stabilising. The turnaround from losses to consistent profitability changes the investment case.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
