New Delhi, Aug. 15 -- Indian equities may be set for a brief recovery, with Jefferies arguing that stronger domestic inflows, a likely surge in September-quarter earnings, and easing U.S.-India trade frictions could nudge the Sensex and Nifty higher in the near term. Jefferies cautioned, however, that questions around sustainability remain, given an unfavourable value-vs-growth setup and looming equity supply.

To position for the potential bounce, Jefferies highlighted a basket of stocks it believes can benefit from improving flows and earnings visibility: Lodha (Macrotech Developers), Cholamandalam, Adani Energy, Shriram Finance, Jubilant FoodWorks, Mankind Pharma, NTPC, and Crompton Greaves Consumer Electricals. In addition, Jefferies ...