IT major Infosys will usher in second quarter earnings season ending September 30, 2012, when it reports numbers on Friday. Indian equities have run-up sharply ahead of corporate results, mainly on account of increased liquidity.
Most analysts have muted expectations from earnings because of a sharp slowdown in India's growth though individual companies may surprise on the upside.
Global investment bank CLSA has come out with a list of stocks investors could dabble in ahead of earnings.
- ICICI Bank: India's private bank has led the current rally, rising over 10 per cent in the last month. It is trading at its 52-week high.
- SBI: CLSA says asset qualities would hold up stronger. India's biggest PSU lender has gained 20 per cent over the last month.
- Axis Bank: The private lender has run up over 15 per cent in the last month.
- M&M: The utility vehicles major could see potential margin surprise on tractor and UV sales. Shares have rallied nearly 15 per cent over the last month.
- Apollo Tyres: Better replacement demand and margins may lead to an upside. The stock has corrected nearly 9 per cent over the last month.
- Sun Pharma: See earnings upgrades on better Taro pricing. Shares have gained 8 per cent over the last month.
- DLF: Sell DLF ahead of earnings because of weak trend in operating cash flows. Shares have rallied nearly 10 per cent over the last month.
- HUL: Recent stock price surge implies heightened expectations from HUL, maintain underweight. The stock has rallied 5 per cent over the last month.
Disclaimer: Investors are advised to make their own assessment before acting on the information.