These Nifty500 stocks may post a strong show despite volatility

Indian companies have struggled to meet investor expectations in the March quarter. But there are a few firms that have seen earnings upgrades after the fourth quarter. Out of the NSE 500 stocks, 20 have seen both earnings upgrades and upward price target revisions, according to Bloomberg analyst consensus estimates.

These include Tata Chemicals, JK Paper, Havells, Indian Hotels, Nocil, Devyani International, and Ambuja Cement. Analysts said many of these stocks could remain resilient in volatile markets.

Rising inflation, interest rate hikes, and geopolitical uncertainties have resulted in FY23 earnings prospects turning uncertain.

But, some companies in industrial and financial sectors could perform better.

"Investment cycle driven by higher realisations and improving demand for commodity producers in core sectors, infrastructure push, real estate cycle, energy self-reliance, defence indigenisation, exports manufacturing, and the digital infrastructure space appear more promising than broad-based consumption given the inflation pressure on low-income households," said Vinod Karki, equity strategist at ICICI Securities.

"The profit share of industrials and financials is improving while valuations appear reasonable in this space," he added.