Stocks to Buy: Citi's top 5 stocks for 2026, explaining why you could get explosive returns of up to 40%:

News Topical, Digital Desk : Global brokerage Citi has released its India forecast for 2026 and shared investment advice. According to the report, banking, telecom, auto, healthcare, and defense sectors will form the backbone of the Indian market next year. Meanwhile, sectors like IT, FMCG, and metals are not expected to see significant growth. Citi has selected five stocks that offer strong return potential—some with potential for up to 40% growth. Let's understand why Citi has chosen which stocks.

ICICI Prudential Life — (Target ₹870 | 40% Upside)

According to the report, this stock is slowly coming back on investors' radar. Growth was sluggish at the beginning of the year, so the stock didn't see much movement. However, business appears to be picking up pace after October, particularly due to distribution and new product launches. The company's new product launches have also allayed fears of declining margins.

Jubilant Foodworks — (Target ₹800 | 37% Upside) According to the report, Jubilant is currently under some pressure due to reduced consumer spending. This has directly impacted Domino's sales. However, Citi is bullish on the stock due to two key factors: the expansion of Popeyes and the 20-minute delivery model, which could attract customers back. The brokerage believes the company's turnaround has begun and the stock could reach ₹800.

HPCL — (Target ₹595 | 33% Upside) HPCL has reported strong earnings over the past few quarters. The company's refining margins are strong. Cash flow has improved, and dividends are also good. The impact of sanctions on Russia appears limited, so there are no concerns about crude oil supplies. There is a risk—if the government increases taxes, it will impact margins.

Voltas — (Target ₹1,775 | 33% Upside) AC demand was weak last year, and there was excess inventory in stores. But the picture is changing. The company has been regaining market share over the past two quarters. Margins are improving, and channel inventory is also decreasing. Citi is confident that Voltas can once again become the top brand in the AC market in the next one or two years.

Lupin — (Target ₹2,280 | 10% Upside) According to reports, the company has a strong hold in the complex drugs segment. The biosimilar pipeline is attractive. Demand for GLP-1 diabetes drugs is expected to grow in India. Upside potential is limited (10%), but this stock is considered low-risk and offers stable returns.