Bernstein’s India model portfolio got a critical update. Here's the lowdown.

livemint.com:

the topic of discussion among analysts and foreign investors. In a recent report published on 29 August, global brokerage Bernstein presented 10 valuation-based stock ideas to navigate the market hysteria as valuations do not seem to concern individual investors. Bernstein’s view on the Indian markets is to navigate cautiously.

While major economic events such as a surprising election result and the weak US labour data did create setbacks, minor positive news drove inflows, allowing the market to beat expectations. Broader themes might drive returns in the short term, but once fundamental challenges emerge, it will create disparities within stocks. Bernstein suggested a bottom-up approach for such times, one that involves selecting stocks with moderate valuations, supportive themes and catalysts that could help them outperform in a changing macro environment of interest rate cuts, the upcoming US elections, and probably a recession in the US.

Bernstein made six changes to its 10-stock portfolio: In this article, we will look at the valuations of these 10 stocks and the catalysts that could help them beat the Nifty 50 Index. While it is easier to find value in a bear market, beating a market that is already exceeding expectations is challenging. However, Bernstein’s India portfolio managed to beat the Nifty 50 Index by 10 percentage points, delivering returns of 25.3% from January to 29 August 29 while maintaining a low beta (volatility).