Jefferies shares 14 ‘buy’ calls; 3 PSUs, Honasa Consumer, IndiGo, Godrej Consumer Products, Chola Finance, Dabur, coal india, hindustan aeronautics, pnb, macrotech developers, supreme industries, idfc first, kei industries, mahanagar gas

As Indian stocks after the June elections suffered heavy losses amid FII selling, China’s stimulus measures and trading at a discount of 8 percent to a record high, global brokerage Jefferies in its India Strategy report has changed. suggested 14 important ideas after a sharp hit on D-Street.

Stock recommendations are given in the area where according to the business more than a fifth or more than 20 percent of the stock under it is trading below the reduction of the result of the June election. On the day of the election results (June 4, 2024), the Nifty fell to a low of 21,281 and settled nearly 6 percent lower to end at 21,884.5.

So, with the Nifty braced and trading 14 percent from the day’s result low, the breakout has underscored that nearly 30 percent of the stock is down more than 20 percent from year-to-date highs.

What’s next for Indian equities in the short to medium term?

Jefferies after the continued deterioration of India’s indices amid several factors including the recent disappointing Q2 believes that the accumulation of government spending / capex in H2, improved seasonality and better relative valuations could mean a short-term recovery is possible. .

Domestic flows remain strong at current high levels and provide a cushion to the downside, added Jeffery in its key Indian Strategy report.

Also, underlining another positive for Indian stocks, Jefferies said that with the recent China rally, India’s premium to earnings (P/E) in EMs has fallen to 83 percent from levels of over 105 percent seen on Sep24.

Recommendations for buying stocks in a beaten basket

Here are 14 key ideas recommended as ‘buys’ including Hindustan Aeronautics, Coal India, IndiGo, Godrej Consumer, PNB, Lodha, Chola Finance, Dabur, GMR Airports, Supreme Industries, IDFC First, KEI Industries, MGL and Honasa Consumer.