Jaiprakash's possible spin-off of its cement unit could be another near-term catalyst, BofA-ML added.
The investment bank also replaced Sun Pharmaceutical Industries with Dr. Reddy's Laboratories in its portfolio, citing their diverging share price performance.
BofA-ML says Dr. Reddy's recent under-performance has made valuations "much less expensive" at 17.6 times fiscal 2013 earnings per share (EPS) vs 22.8 times for Sun Pharma.
Dr. Reddy's also has potential near-term triggers because of anticipated U.S. drug launches.
However more broadly, BofA-ML says expects range-bound trading in Indian stocks, with possible correction in the corporate earnings reporting season.
Copyright Thomson Reuters 2012