Jefferies has shifted its portfolio recommendations toward large‑cap banks, NBFCs, oil & gas, and select real‑estate names after valuing these segments below historical averages.
According to Mahesh Nandurkar, Managing Director and Co‑Country Head at Jefferies India, the brokerage now sees a 12‑month upside for banks and NBFCs, as their valuations sit below the 12‑month average.
The RBI’s recent 25‑basis‑point rate hike, followed by an anticipated 50‑basis‑point lift, will pressure rate‑sensitive sectors; yet Jefferies expects markets to price in such moves early.
Real‑estate, infrastructure, and power firms are also positioned favorably, with improved valuation multiples and sustained demand, especially in utilities amid potential El Niño‑driven growth.
Investors should remain selective, as Jefferies cautions against buying simply on valuation allure; the brokerage’s forward guidance points to a 12‑month upside, provided FII flows rebound and RBI policy stabilizes.