Jefferies Increases Stake in Reliance Industries and Zomato, Says Chris Wood in Latest Greed & Fear Note
Jefferies’ Chris Wood has raised the stake in Reliance Industries within his India portfolio while also boosting investments in real estate stocks such as DLF and Macrotech in the Asia ex-Japan long-only portfolio.
- This adjustment reflects growing confidence in India’s real estate sector, driven by robust demand and strong financials of key players.
- The portfolio reshuffle also led to the addition of MakeMyTrip, replacing Axis Bank, and a slight increase in Zomato’s weightage.
Reliance Industries Gains More Weight in Portfolio
The latest Greed & Fear note by Chris Wood, Global Head of Equity Strategy at Jefferies, outlined key portfolio adjustments with a focus on real estate, internet stocks, and Reliance Industries.
- The weightage of Reliance Industries in Jefferies’ India long-only portfolio will increase by 2%.
- This shift was made by reducing the weightage of HDFC Bank and SBI, trimming each by 1%.
This move highlights Reliance’s strong fundamentals and strategic importance within the portfolio.
Real Estate Stocks See Major Reshuffling
Jefferies has made key changes in its Asia ex-Japan long-only portfolio by adjusting real estate stock holdings.
- Godrej Properties has been removed, making room for other real estate players.
- Macrotech Developers’ (Lodha) investment will increase from 1% to 4%, indicating a strong belief in its growth potential.
- DLF shares have also been added, with a 3% allocation, further emphasizing the positive outlook on India’s real estate sector.
These changes suggest that real estate stocks are gaining momentum, backed by a resilient property market and increasing demand.
MakeMyTrip Joins Portfolio, Replacing Axis Bank
In the internet stocks segment, Jefferies has introduced MakeMyTrip (MMT) with a 4% allocation, replacing Axis Bank in the portfolio.
- The NYSE-listed travel aggregator has been added at the expense of the private lender, indicating a shift in focus towards digital businesses.
- This move aligns with the strong growth outlook for the travel industry, especially as global and domestic travel demand remains high.
Goldman Sachs Also Backs MakeMyTrip
Recently, Goldman Sachs included MakeMyTrip in its ‘Top Ten Buy’ ideas for domestic stocks.
- The brokerage noted a strong forward outlook for the company, supported by sustained travel demand and favorable tax policies.
- A positive industry structure is expected to drive higher margins for the company, making it a promising investment.
Zomato’s Weightage Increased Amid Stock Correction
Jefferies has also raised the stake in Zomato, the latest entrant to the Nifty 50 index, by 1%.
- Zomato’s stock has dropped over 25% in the last six months, impacted by rising competition and margin pressures.
- Despite the short-term decline, Jefferies’ increased exposure signals confidence in Zomato’s long-term growth potential.
This portfolio reshuffle reflects a strategic shift towards real estate and internet stocks, while maintaining strong positions in blue-chip companies like Reliance Industries.