Top stocks to buy for the long term: The lingering concerns over West Asian conflict, volatile crude oil prices, rising US bond yields, and sustained selling by foreign portfolio investors (FPIs) remain key risks. However, the market correction has improved valuation comfort in select pockets, creating opportunities for investors with a disciplined, earnings-led approach.
According to Uttam Kumar Srimal, Deputy Head - Fundamental Research, Axis Direct, while domestic fundamentals remain a key source of market resilience, Q2FY27 earnings and management commentary will be the key market drivers.
"Investors should focus on revenue growth, margin trends, pricing power, order-book visibility and management guidance for the second half of the financial year 2026-27 (H2FY27). While elevated energy and freight costs may constrain profitability in some sectors, companies demonstrating earnings resilience, strong balance sheets and consistent execution are better positioned to navigate the current environment," said Srimal.
Vinit Bolinjkar, the head of research at Ventura, is positive on Indian equities over the next 2–3 years, supported by rising incomes, premiumisation, financialisation, healthcare demand and manufacturing localisation.
"Near-term volatility may persist due to valuations, global uncertainty and commodity prices, but companies delivering visible earnings growth and improving return ratios should outperform. Consumer durables, healthcare, select financials and speciality manufacturing remain preferred structural themes," said Bolinjkar.