Jefferies shuffled and redeployed cash in its model stock portfolio given the easing U.S. yields and stabilising oil prices amid growing expectations of a better-than-initially expected BJP performance in the state elections.
The brokerage added Coal India Ltd., Eicher Motors Ltd., Honasa Consumer Ltd., HDFC Bank Ltd., ICICI Prudential Life Insurance Co., and NTPC Ltd. to the portfolio.
Marico Ltd., Maruti Suzuki India Ltd., Power Grid Corp. of India, and non-banking financial companies were removed.
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; that is, it might win Rajasthan while vote share in other states would be better, Jefferies said in a Nov. 23 note.
“If the latter is true, the market might see a bounce after the results announcement,” it said.