- Goldman Sachs has identified 15 large-cap Indian stocks for H2 2026 market recovery
- Stocks include Mazagon Dock, HDFC Bank, Reliance, Adani Power, Kotak Mahindra Bank
- Themes include large-cap rotation, defence, energy security, and recovery post oil shock
Goldman Sachs has identified 15 large-cap stocks it expects to benefit from a combination of turning foreign sentiment, near-term macro catalysts and structural growth themes as it turns more constructive on Indian equities for the second half of 2026.
The brokerage's list includes Mazagon Dock Shipbuilders and HDFC Bank alongside Reliance Industries, Adani Power, Adani Enterprises and Kotak Mahindra Bank, spanning energy, financials, utilities and industrials. The basket was compiled from stocks within the BSE200 and Goldman Sachs' coverage universe that screen as reasonably valued and carry large-cap exposure.
Other names on the list include NTPC, Hindustan Aeronautics, Eternal (Zomato), Power Grid of India, Adani Green Energy, InterGlobe Aviation, HDFC Life Insurance, Indian Hotels and MakeMyTrip. The median stock in the basket trades at 34 times forward earnings with a PEG ratio of 2.0 times, according to the report
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Goldman Sachs mapped each stock against multiple themes it expects to play out in the second half, including rotation into large-caps and foreign-sold names, resilience to a "super" El Nino, recovery potential following the recent oil shock, and exposure to structural themes such as aerospace and defence and energy security.
Mazagon Dock Shipbuilders and Hindustan Aeronautics were tied to the defence and aerospace theme, which the brokerage said remains "strategically important" for the government over the medium term. HDFC Bank, meanwhile, screened among the most reasonably valued names in the basket, trading at 15 times forward earnings with a PEG ratio of just 1.1 times.
Reliance Industries and Adani Green Energy featured under the energy security theme. Eternal and InterGlobe Aviation were flagged as recovery plays following the oil shock, given resilient demand and moderating fuel costs in the tourism and aviation space, a theme Goldman Sachs said has turned into the best performing pocket of the market in recent weeks after lagging through the first half.
Goldman Sachs is betting on 15 large stocks to lead Indian market's recovery
Photo Credit: NDTV Profit
The stock picks come alongside a broader sector reshuffle, with the brokerage raising utilities to overweight and industrials to marketweight, while lowering metals and mining, and cement, to underweight.
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