The Nifty advanced 0.1% over the past week to outperform the Emerging Markets (EM) Index and the Asia-Japan (AxJ) Index. According to Jefferies’ report, Nifty outshines the EM Index by 181 basis points and the AxJ index by 102 basis points. Realty and IT emerged as the top-performing sector for the Nifty, while Telecom and Utilities lagged behind.
Meanwhile, the Indian Rupee witnessed a depreciation of 0.2% against the US Dollar week-over-week. Ten-year government bond yields surged 13 bps to 7.35% over-week, whereas Jefferies India Model Portfolio underperformed MSCI India by 51bps during the same period.
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Bajaj Finserv, Titan Company, Bajaj Finance, Infosys and Adani Enterprises were the top performers in the Jefferies’ report, while the laggards included Oil & Natural Gas Corporation, NTPC, Hindalco Industries, Axis Bank and Maruti Suzuki India.
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Foreign Portfolio Investment in October fell sharply to $ 580 million in equities, indicating a withdrawal of money from the Indian market, whereas the FPI net flows in the debt instruments surged to $110 billion, suggesting an increase in interest in relatively safer securities.
Jefferies India Model Portfolio
Financials
Jefferies took an ‘Overweight’ stance on the sector indicating a bullish sentiment. Jefferies allocated 7.1% weightage to Axis Bank, 8.5% to ICICI Bank, 2.8% to HDFC Bank, 4.7% to SBI, 2.1% to IndusInd Bank, 3.3% to Bajaj Finance and 2.6% to Cholamandalam Fin.
IT
Jefferies took an ‘Underweight’ stance on the sector indicating a bearish sentiment. Jefferies allocated 6.8% weightage to Infosys and 2.6% to TCS.
Energy
Jefferies took an ‘Underweight’ stance on the sector indicating a bearish sentiment and allocated 5.9% weightage to Reliance Industries.
Telecom
Jefferies took an ‘Overweight’ stance on the sector indicating a bullish sentiment and allocated 4.1% weightage to Bharti Airtel.
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Consumer Staples
Jefferies took an ‘Underweight’ stance on the sector indicating a bearish sentiment. Jefferies allocated 2% weightage to Godrej Consumer, 2.5% to Marico and 3% to ITC.
Consumer Disc
Jefferies took an ‘Underweight’ stance on the sector indicating a bearish sentiment. Jefferies allocated 2.4% to Maruti Suzuki India, 2.9% to Tata Motors and 4.9% to TVS Motors.
Material
Jefferies took an ‘Overweight’ stance on the sector indicating a bullish sentiment. Jefferies allocated 2.9% weightage to Tata Steel, 2.6% to HindalCo and 2.6% to UltraTech Cement.
Healthcare
Jefferies remained Neutral on the sector and allocated 3.2% weightage to Max Healthcare and 2.2% to Sun Pharmaceuticals.
Industrials
Jefferies took an ‘Overweight’ stance on the sector indicating a bullish sentiment. Jefferies allocated 5.6% to Larsen & Toubro and 2.9% to Kajaria Ceramics.
Utilities
Jefferies took an ‘Overweight’ stance on the sector indicating a bullish sentiment. Jefferies allocated 2.4% weightage to Power Grid Corporation and 2.6% to JSW Energy.
Real Estate
Jefferies took an ‘Overweight’ stance on the sector indicating a bullish sentiment. Jefferies allocated 0.9% weightage to Godrej Properties and 1% to Macrotech Developers.
