In a significant reshuffle of its India long-only portfolio, foreign brokerage Jefferies has announced the removal of two prominent stocks: HDFC Bank, India's most valued lender, and PB Fintech, the parent company behind Policybazaar and Paisabazaar.
The changes, detailed in Jefferies' latest GREED & Fear note, introduce new key players to the portfolio. MCX (Multi Commodity Exchange of India) and Lenskart Solutions have been added, alongside Bajaj Finance, which replaces REC.
Further adjustments include an increased allocation to Eternal by one percentage point. This move was funded by a reduction in the brokerage's holding of Bharti Airtel, as reported by Reuters.
Reasons Behind the Portfolio Shift
These strategic alterations come as Jefferies observes a more positive outlook for India's market. Christopher Wood, Jefferies' global head of equity strategy, highlighted several encouraging factors. According to a Reuters report, Wood noted that bank credit growth in India has reached its fastest pace in over a decade. Additionally, the country is experiencing a return of foreign equity inflows, coupled with supportive measures from the central bank aimed at strengthening the rupee.
These combined factors suggest a robust domestic story for India, prompting the brokerage to recalibrate its investment strategy to align with evolving market dynamics and perceived opportunities.