Largecaps vs Midcaps or IT vs Banks: Confused where to invest? Jefferies names stocks to buy, sectors to avoid
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Jefferies increased its exposure to large-cap stocks in its India model portfolio.
- ✓The brokerage said, "Kotak Mahindra Bank could benefit from the removal of the leadership overhang." They added Reliance Industries and Welspun Corp while cutting weight in rate-sensitive sectors like real estate.
- ✓Financials now hold the highest sector allocation.
Story at a Glance
- Category
- MARKET
- Reported By
- Zee Business
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Global investment bank Jefferies has increased its exposure to large-cap stocks in its India model portfolio, citing relatively attractive valuations and expectations of a shallower rate hike cycle despite rising bond yields.
Jefferies said Indian equities have corrected from their August peak, bringing valuations below their long-term averages. The brokerage expects large-cap stocks to offer relatively better risk-reward as the earnings growth gap with midcaps narrows.
The brokerage has increased its weight in Kotak Mahindra Bank and Reliance Industries, while adding Welspun Corp to its model portfolio. It has also trimmed exposure to rate-sensitive segments such as non-banking financial companies (NBFCs), real estate and consumer discretionary.
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Zee Business
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