In 2025, the Nifty index showed weak performance and is currently trading around the 25,800 level. During the year, it delivered a net return of nearly 9%.
Market sentiment has been under pressure due to continued selling by Foreign Institutional Investors (FIIs) in the last few months, a weakening rupee, and delays in a trade agreement with the United States.
Until there is positive news on these three factors, overall market sentiment is expected to remain weak.
Market expert Parag Thakkar advised investors not to panic. He believes the rupee is now at an attractive level, which could encourage FIIs to return. Since Indian markets have underperformed, they may perform better in 2026.
He also expects the impact of steps taken by the RBI and the government to become clearly visible next year, leading to improved market conditions.
New Year Pick 2026: PNB Housing Finance
As his New Year investment pick, Parag Thakkar has recommended buying shares of PNB Housing Finance. He believes the stock is currently available at a very attractive valuation and expects a strong market rally in 2026.
PNB Housing Finance shares are currently trading at ₹895. The stock’s 52-week high is ₹1,142, while the 52-week low is ₹746. Over the past one month, the stock has delivered a negative return of 2.65%.
On a net basis, it has posted a year-to-date return of -1.5%, a one-year return of 0.5%, and a two-year return of around 12%.
Why Experts Are Positive on the Stock
Experts feel that at the current price, PNB Housing Finance shares look very attractive. Based on the estimated book value for FY27, the stock is trading at around 1.1 times book value and at a P/E multiple of 10 times.
Another positive development is the appointment of Ajay Shukla as the new Managing Director and CEO. He has nearly three decades of experience and has previously worked with Tata Capital, where he delivered strong performance.
Long-Term Potential and Shareholding Details
Experts believe PNB Housing Finance can deliver good long-term returns if investors maintain a long-term perspective. An initial target price of ₹1,200 has been suggested.
At the current market price of ₹895, this indicates a potential upside of around 35%. The comfortable valuation adds to the stock’s attractiveness.
The company launched its IPO in October 2016 at ₹775 and reached its lifetime high of ₹1,717 in August 2017. Currently, it has a market capitalisation of ₹23,300 crore.
As of recent data, promoter shareholding stands at 28.04%, while the public holds 71.96%. Mutual funds hold a combined stake of 28.89% across 38 schemes. Retail investors number 211,940 and together hold an 8.15% stake.
Institutional holding trends show the following:
December 2024: FII 24.34%, DII 26.85%, total 51.19%
March 2025: FII 21.45%, DII 29.88%, total 51.33%
June 2025: FII 24.18%, DII 37.99%, total 62.17%
September 2025: FII 18.61%, DII 40.68%, total 59.29%
