Just like the equity market is picking up, so is the economic recovery. In a recent report by Jefferies, it's economic indicators showed that workplace mobility, car sales and property searches have improved for the third straight week, led by encouraging COVID trends in large cities. Activity this week was better across almost all economic segments.

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To gauge this conclusion, Jefferies studied it's index that uses a combination of agriculture/rural (25 percent), broader economy (35 percent) and predominantly urban (40 percent) indicators.

Based on this index, the global brokerage house saw that receding COVID concerns in top cities led to the third successive weak of improvement in urban trends.

In fact, congestion levels climbed again WoW (4 ppt) and are now 23 ppt up from July lows. Several broad data points improved too, like PV registrations (+11 percent YoY); rail freight (+6 percent YoY, second consecutive growth reading) and e-way bill generation (+3 percent against prior August), added the research report.

The monsoon this year has fared well in every state. The data highlighted that the rainfall this year has been 4 percent above normal levels with 70 percent of the season done. 86 percent of country by area has received normal or better rains. Monsoon base is similar to current and as such rural activity is now largely caught up.

With keeping in the view the steady re-opening and the urban market improvement, Jefferies listed out its preferred plays i.e. Maruti Suzuki, DLF, Godrej Properties, Havells and Voltas.