Chris Wood's GREED and Fear raises India's weightage, cuts China's; details here

livemint.com:

Coal India, Honasa Consumer ltd, Eicher Motors Ltd, NTPC Ltd, HDFC Bank Ltd and ICICI Prudential Life Insurance Company Ltd to its India model portfolio deploying cash and at the cost of Power Grid Corporation of India Ltd, Marico Industries, Maruti Suzuki India Ltd and NBFCs (Non-Banking Financial Companies). In an equity strategy note dated November 24, analysts Mahesh Nandukar, Abhinav Sinha, and equity associate Nishant Poddar of Jefferies India Pvt Ltd said that they had raised cash tactically in their model portfolio in early September, which they said are now deploying as the key macro concerns around higher US yields, rising oil prices and near-term state election results have subsided.

Jefferies had replaced Maruti Suzuki India Ltd with Eicher Motors as they expect the Indian two-wheeler demand to grow at a faster pace than passenger vehicles over the next two years. Eicher Motors stock has lagged the Nifty Auto index current year to date on competitive concerns, but Jefferies sees limited impact on Eicher Motors from Harley and Triumph launches and sees a potential for re-rating as confidence on long-term market share sustainability rises.

Maruti, on the other hand, is witnessing some demand-side pressures, as per Jefferies. Meanwhile, Power Grid Corporation was replaced with NTPC as both are attractive plays on the India power story but NTPC offers a higher earnings per share growth of 10% CAGR (compound annual growth rate) of over 6% for Power Grid.

Also, Marico Industries was replaced by Honasa Consumer Ltd as Marico has delivered well on margin expansion in the last few quarters, although volume growth remains weak, with rural still under pressure. The GREED & Fear index believes that consolidation is