Stories
Jefferies Boosts Reliance Industries Weightage and Adds Two New Stocks to Model Portfolio
C
CNBC TV18•06-10-2026, 10:51
Jefferies Boosts Reliance Industries Weightage and Adds Two New Stocks to Model Portfolio
- •Global investment banking firm Jefferies increased its weightage on Reliance Industries to 7.5 percent, citing attractive valuations and potential for earnings upgrades.
- •Kotak Mahindra Bank was added to the model portfolio with a 2 percent weightage following the removal of leadership overhang and potential growth acceleration.
- •Welspun Corp joined the portfolio with a 2.4 percent weightage, expected to benefit from multi-year upcycles in oil and gas infrastructure spending.
- •Jefferies noted that largecap stocks in India are presenting more favourable risk-reward ratios due to better relative valuations compared to broader markets.
- •The firm trimmed its weightage on interest rate-sensitive sectors like NBFCs and Real Estate while remaining overweight on them and Eicher Motors.
Key Questions Answered
Jefferies raised its weightage on Reliance Industries to 7.5% because the stock trades at attractive valuations of 8.4 times its one-year forward EV/EBITDA multiple, supported by possibilities of earnings upgrades and higher Gross Refining Margins (GRMs).
Jefferies added Kotak Mahindra Bank with a 2% weightage following leadership overhang removal and expected growth acceleration, and Welspun Corp with a 2.4% weightage to benefit from an oil and gas infrastructure upcycle in the US and West Asia.
MSCI India's drop of 10% from its August peak brought valuations below long-term averages. Jefferies views this correction alongside positive real interest rates as an opportunity to favor largecap stocks as stable hiding places for investors.
