As Indian equities after the June election run-up have lost a great deal amid the FII sell-off, China stimulus measures and are trading at a 8 per cent discount to the all-time high, global brokerage Jefferies in its India Strategy report has suggested 14 key ideas after the sharp beating on the D-Street.

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The stock recommendations have been given in an environment where as per the brokerage over a fifth or more than 20 per cent of stocks under its coverage are trading below the June election result lows. On the election results day (June 4, 2024), Nifty tumbled to a low of 21,281 and settled nearly 6 per cent lower to end at 21,884.5. 

So, even as Nifty has geared up sharply and is trading over 14 per cent from the result's day low, the brokeage underscored that as many as 30 per cent of the stocks are down more than 20 per cent from year-to-date peaks.

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

Jefferies after a continued drawdown in Indian indices amid a host of factors including the latest disappointing Q2 believes that a pick-up in goverment spending / capex in H2, improved seasonality and somewhat better relative valuations may mean that a potential short term bounce back is possible.

Domestic flows are still resilient at current high levels and offer downside cushion, added Jefferies in its key Indian Strategy report.

Also, asserting one more positives for Indian equities, Jefferies said that with the recent China rally, India's price to earnings (P/E) premium to EMs has reduced to 83 per cent from the over 105 per cent levels seen in Sep24.

Stock buy recommendations from the beaten-up basket

Here are the 14 key ideas recommended as a 'buy' 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.