Jefferies drops HDFC Bank, PB Fintech from India portfolio

The Story in Brief

Jefferies has removed HDFC Bank and PB Fintech from its India long-only portfolio, while adding MCX and Lenskart Solutions, Business Today reports, citing Reuters. Bajaj Finance will replace REC. The brokerage also raised Eternal’s allocation by one percentage point, funded by a cut in Bharti Airtel.

Jefferies said India’s market outlook was improving, pointing to bank credit growth of 17% to 18% year on year, with corporate lending near 20%. It also cited returning foreign equity inflows and central bank measures supporting the rupee. The brokerage expects inflows of $80 billion to $100 billion by September 30, according to the report.

The Indian Opinion

The easy story is that Jefferies has issued a verdict on which companies will win. It has not. A portfolio change reflects one brokerage’s valuation and risk choices, not a guarantee for investors. The bullish case rests on sustained lending growth, foreign inflows and a firmer rupee, while the bearish case would gain force if those flows weaken or credit growth slows. The next quarterly data should show whether 17% to 18% lending growth is holding.

Source: businesstoday.in

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