Jefferies' Chris Wood rejigs India equity portfolio. Here are the latest stock changes
Jefferies' Christopher Wood has announced changes in the long-only equity portfolios
PremiumJefferies' global head of equity strategy Christopher Wood has announced changes in the long-only equity portfolios. The investment in HDFC in the India long-only equity portfolio will be removed and replaced by an investment in HDFC Bank, he said in the Greed and Fear note.
Meanwhile, the investment in HDFC in the Asia ex-Japan long-only portfolio will also be removed and replaced by an investment in HDFC Bank. While the investment in ICICI Lombard General Insurance in the India long-only portfolio will be reduced by one percentage point with the money added to HDFC Bank, the note stated.
In the financial sector, Wood now holds State Bank of India (SBI), Bajaj Finance, ICICI Prudential Life, ICICI Lombard and Computer Age Management Services (CAMS) besides HDFC Bank in his India long-only equity portfolio. Under energy, its portfolio includes Reliance Industries (RIL) and Oil and Natural Gas Corporation (ONGC).
Jefferies' India long-only equity portfolio also has investments in real estate stocks like Godrej Properties, Century Textiles, DLF, Macrotech Developers, and other stocks include Maruti Suzuki, Larsen & Toubro (L&T), Jubilant FoodWorks and Container Corporation of India. Wood had launched India's long-only equity portfolio last year.
On the other hand, Reliance Industries, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, Godrej Properties, ICICI Bank, HDFC Bank, Bajaj Finance, Larsen & Toubro are its top Indian stock picks which are part of the Asia ex-Japan long-only thematic equity portfolio.
“As for the Indian stock market, it continues to be held up by domestic flows while foreigners keep selling. Domestic equity mutual funds have recorded net inflows of $19 bn in the first five months of 2022, while foreigners have sold a net $23.4 bn of Indian equities year-to-date. The risk in the domestic flows is that about half was accounted for by retail investors investing directly last fiscal year, as opposed to into funds," he highlighted.
In another note last month, Jefferies' Chris Wood had said that Greed & fear continues to believe that this is a year where investors should accumulate their favourite Indian stocks on weakness in what remains Asia’s best long-term structural story in terms of equities.
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