NEW YORK ( TheStreet) - A slew of concerns such as the European debt crisis, corporate governance scandals, soaring inflation and higher valuations recently have impacted the performance of Indian stock markets.

However, in terms of absolute performance, India compares favorably and posted better returns than other emerging markets like Brazil and China during 2010. Brazil had a flat year in terms of returns, while India and China delivered 14% and negative 10% returns during the year, respectively.

Indian stocks have been major outperformers during the last two years and are trading at a relative premium compared to markets like Brazil and China. Nonetheless, Indian markets are looking attractive and investors can add quality stocks in the near term. The International Monetary Fund forecasts India's economy to grow at 8.4% during 2011, although with inflation, it is likely to cool off from 13.2% during 2010 to 6.7% by 2012.

Based on growth prospects, we have selected five stocks: HDFC Bank ( HDB), ICICI Bank ( IBN), Tata Motors ( TTM), iGate ( IGTE) and Sterlite Industries ( SLT) for attractive returns during 2011 and beyond. In addition, these stocks appear lucrative after the recent correction.

These stocks span diverse industries, namely financials, metals, information technology and auto. The stocks are stacked in terms of upside, great to greatest.

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