How Jefferies is reshuffling its portfolio as soaring bond yields give Nifty bulls sleepless nights
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Jefferies added Kotak Mahindra Bank to its portfolio as rising bond yields pressure Indian stocks.
- ✓The firm increased weight on Reliance Industries while cutting exposure to real estate and consumer stocks.
- ✓“Large caps, which are below average valuations, may offer hiding places,” Jefferies analysts said, noting better risk-reward profiles ahead.
Story at a Glance
- Category
- MARKET
- Reported By
- The Economic Times
- Reading Speed
- 6 Minute(s)
- Market Focus
- India Economy
As the Indian stock market faces pressure from rising bond yields, global investment bank Jefferies sees an opportunity emerging beneath the broader market weakness in largecap stocks, where valuations have fallen below historical averages, and the earnings gap with midcaps is expected to narrow.
Ahead of the Q2 earnings season, Jefferies has added Kotak Mahindra Bank to its model portfolio, increased weight on heavyweight Reliance Industries (RIL) to overweight and trimmed exposure to NBFCs, real estate and consumer discretionary stocks.
The brokerage has raised its weight on largecaps, arguing that the risk-reward profile is improving as global and domestic bond yields rise. “Large caps, which are below average valuations, may offer hiding places,” Jefferies analysts said.
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The Economic Times
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