Top stock picks for 2026: Defence, banks, power, and infra on Ambareesh Baliga's radar

Independent market analyst Ambareesh Baliga has laid out a carefully selected portfolio of stocks spanning defence, banking, infrastructure, and power — sectors he believes are well-positioned for the next one to five years amid ongoing global geopolitical uncertainty.

Defence: Still expensive, but hard to ignore

Baliga admits defence stocks remain richly valued, but says they now deserve a place in every core portfolio given three years of geopolitical flux. His picks in the segment are Mazagon Dock, Garden Reach Shipbuilders, Cochin Shipyard, and Bharat Electronics (BEL) — four names he is comfortable holding through market volatility.

Banking: HDFC Bank, Kotak, Axis, and IDFC First

After 12 to 18 months of underperformance, Baliga sees HDFC Bank as a strong buy at current levels, with a price target of ₹1,000–1,050 over a 12–15 month horizon. He also flags Kotak Mahindra Bank and Axis Bank for fresh positions among large private sector lenders. For those with patience, IDFC First Bank — which has corrected sharply after a promising run — is a 9–12 month recovery bet.


On HDB Financial Services, Baliga is optimistic following its strong quarterly results and management guidance of 700 basis points above nominal GDP growth. He sees an upside towards ₹800–850 from current levels, noting the stock formed a clear base near ₹600.

Insurance: Low penetration, long runway

HDFC Life and SBI Life are firm additions to his portfolio, backed by India's persistently low insurance penetration. Baliga expects meaningful growth over the next four to five years as awareness and distribution continue to expand.

Infrastructure and power: The war-driven energy thesis

For infrastructure, Baliga's top conviction name is Larsen & Toubro (L&T), which he expects to capture the largest Indian share of Middle East post-war reconstruction contracts. He is holding this stock for at least four to five years.

On power, Baliga says the ongoing conflict has made energy security the defining investment theme of this decade. With the government doubling down on green energy, his picks are Tata Power and NTPC for generation exposure, and REC Limited on the financing side.