3 weeks ago
Christopher Wood reshuffles India portfolio; adds MCX, Lenskart, Bajaj Finance
A man named Christopher Wood works at an investment company called Jefferies.
It is his job to decide which companies in India people should invest their money in.
He keeps a special list of Indian companies he thinks are great.
Recently, he changed his list.
He removed some companies, like HDFC Bank, and added new ones, such as MCX, Lenskart and Bajaj Finance.
He trusts banks and finance companies the most, so he keeps a lot of his money there.
He also noticed that investors from other countries are buying Indian company shares again after many months of selling.
He says banks in India are lending more money to people and businesses, which is a good sign.
He believes all of this will help India's economy grow stronger.
Jefferies strategist Christopher Wood removed HDFC Bank and PB Fintech from his India long-only portfolio.
Multi Commodity Exchange of India (MCX), Lenskart Solutions and Bajaj Finance were added with a 4% weight each; REC was replaced by Bajaj Finance.
The financial sector remains the largest allocation at 26%, while SBI Life Insurance, Adani Ports and GMR Airports are the top holdings at 6% each.
Wood estimated net foreign purchases in Indian equities at $2.45 billion in July, ending four consecutive months of selling.
Bank credit growth stood at 17.7% year-on-year in the fortnight ended July 15, moderating from 18.6%, according to RBI data.
- Who
- Jefferies strategist Christopher Wood, with credit growth data from the Reserve Bank of India (RBI).
- What
- Wood reshuffled his India long-only portfolio, removing HDFC Bank and PB Fintech and adding MCX, Lenskart Solutions and Bajaj Finance.
- Where
- India, with the portfolio benchmarked against the MSCI India index.
- When
- In the latest GREED & fear note, covering July data, including the fortnight ended July 15.
- Why
- Wood cites strong domestic demand, improving credit growth and the return of foreign investors to Indian equities as supporting the market outlook.
Key facts
- Portfolio Manager
- Christopher Wood (Jefferies)
- Benchmark
- MSCI India index
- Stocks Added
- MCX, Lenskart Solutions, Bajaj Finance (4% each)
- Stocks Removed
- HDFC Bank, PB Fintech; REC replaced by Bajaj Finance
- Top Individual Holdings
- SBI Life Insurance, Adani Ports, GMR Airports (6% each)
- Financial Sector Weight
- 26% of the portfolio
- July Net Foreign Purchases
- $2.45 billion
- Bank Credit Growth
- 17.7% YoY (fortnight ended July 15), down from 18.6%
Sources
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