After the better-than-expected December quarter results, analysts at several brokerages have upgraded their earnings estimates for some 100 NSE-500 stocks.

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This comes after several stocks reported a 10-100 percent increase in their earnings estimates. Stocks like SBI, SBI Life Insurance, ICICI Pru Life Insurance, Finolex Industries, APL Apollo Tubes, among others, have reported an upgrade in their estimates.

Per an Economic Times report, these stocks could give as much as 10-30 percent returns in the next 12 months.

"If you look at the last two quarters, they have been phenomenal with respect to earnings. We have had a decline in sales, but more than 20 percent growth in profits. It looks like even Q3 will be more than 20 percent growth in profits," Susmit Patodia, Associate Director & Fund Manager at Motilal Oswal AMC told CNBC-TV18.

SBI stock had surged over 15 percent after better than expected earnings for Q3. Since the reporting of its Q2 FY21 earnings, the stock has surged as much as 72 percent.

Experts believe these earnings upgrades will carry forward to the next quarter and fiscal. With the credit growth coming into the next fiscal year and reduced risk levels, the financial space is geared for significant rerating, along with growth.

"Q4 obviously will be upwards of 40 percent because of the base and so will Q1. So, we have very strong earnings momentum built-in for the next 2-3 quarters and hence this is really what I think is supporting the markets,” he added.

Before the start of the quarter, expert consensus believed Nifty EPS to be about Rs 500 for FY21, Rs 650 for FY22, and Rs 800 for FY23. However, with the upgrades in Q3FY21 earnings, EPS will be upgraded by a good measure, said S Krishna Kumar, CIO - Equity of Sundaram MF. Consequently, earnings of Rs 650 for FY22 will see meaningful upgrades and it should be closer to Rs 700, he added.

Analysts expect domestic economy facing sectors to do better than the export-oriented sectors in the coming fiscal.

"Maybe after 6-7 years you finally have the Indian domestic economy doing better than its western counterparts,” Patodia said.