Jefferies Boosts India Portfolio Weighting to 12%
By Business Desk
Jefferies significantly reshapes its India equity portfolio, raising the country’s weighting to 12% on strong domestic growth prospects. Key stock changes detailed.
Jefferies has executed a substantial reshuffle within its India long-only equity portfolio, elevating the country’s weighting to 12%. This strategic move signals heightened conviction in India’s robust domestic growth narrative, as detailed in Christopher Wood’s “Greed & Fear” note.
- HDFC Bank
- PolicyBazaar
- REC Limited
These removals represent a strategic reallocation of investment conviction. Notably, REC Limited had delivered a significant 228% return in rupee terms since its December 2022 inclusion.
- Multi Commodity Exchange of India (MCX)
- Lenskart Solutions
- Bajaj Finance
The addition of MCX is backed by Jefferies’ India research team, citing substantial product and penetration opportunities. Bajaj Finance returns to the portfolio after previously appreciating 551% between May 2015 and March 2020, and a 49% rise since its January 2024 removal.
Further adjustments included a one-percentage-point increase in Eternal’s (formerly Zomato) weighting, financed by trimming Bharti Airtel’s allocation.
Broader Market Dynamics
This portfolio shift coincides with a positive reversal in foreign investment sentiment towards Indian equities. Foreign portfolios turned net buyers in July 2026, injecting $2.45 billion into the market after months of outflows.
India’s economic indicators remain robust, underpinning Jefferies’ overweight position. Bank credit growth has accelerated to 17-18%, marking the fastest pace in over a decade.
- Corporate lending: up 20% year-on-year
- Agriculture loans: up 17%
- Retail loans: up 16%
Foreign inflows into Indian government bonds have reached $8.7 billion since June, following the tax-free ownership initiative. An RBI scheme designed to attract NRI dollar deposits has already garnered $41 billion and is projected to double by September.
The Indian rupee has also shown resilience, strengthening to 95.17 against the dollar after bottoming out at 96.96 in May. This positive currency backdrop further enhances the appeal for foreign investors.