Jefferies adds Coal India, Honasa, Eicher Motors, HDFC Bank, IPru Life to its model portfolio

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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 Equity analysts-Mahesh Nandukar, Abhinav Sinha, and Equity associate-Nishant Poddar a 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.

Also Read- Mamaearth-parent Honasa Consumer soars over 14% post Q2; up 37% in 2 sessions US 10-year yields have moved down by 60 bps since the recent peak. (100 bps make 1%).

Also Despite the events in the Middle East, oil prices have behaved well and recent correction in oil prices leaves room for the retail auto-fuel (petrol) prices to be lowered, Further analysts at Jefferies India Pvt Ltd said that, the opinion polls and on-the-ground feedback suggest that the BJP's performance in the upcoming state elections may be better than initial expectations (i.e. might win Rajasthan and vote share in other states better).

If the latter is true, the market might see a bounce after the results announcement on the 3rd of December. Their conviction on capex cycle theme continues unabated with a specific focus on housing, power sector among other industrial sectors.