Chris Wood’s Portfolio Tweak: Adding New Stocks Post-Reliance Exit

Chris Wood, the global head of equity strategy at Jefferies, has recently revealed the latest adjustments to the brokerage's India long-only equity portfolio. This move comes after the complete divestment from Reliance Industries and Axis Bank, along with slight reductions in investments in ICICI Bank, REC, and JSW Energy. The portfolio now includes a basket of new Indian stocks across multiple sectors.

Interestingly, Ambuja Cements, Le Travenues Technology (Ixigo), and Lemon Tree Hotels have been introduced with a 4% weighting each. This strategic reallocation aims to diversify the portfolio and capitalize on emerging opportunities in the market.

Financials

In the financial sector, the portfolio features significant holdings:

- ICICI Bank - The brokerage has a 4% weight in the portfolio. The private lender has risen almost 10% on a year-to-date basis. - HDFC Bank - India’s largest private sector bank has also been assigned a 4% weight. The lender’s stock price has risen 8.5% this year. - State Bank of India - The country’s leading state lender carries a 4% weight. The stock has risen over 8% on a year-to-date basis. - SBI Life Insurance - The insurance major has the highest weight in this pack at 6%. SBI Life shares have risen 32% since the beginning of the year. - REC Limited (Rural Electrification Corporation) - The power financier also has a 4% weight. The scrip is down over 20% since the beginning of the year. - PolicyBazaar (PB Fintech) - The portfolio features a 5% allocation for the counter. PB Fintech share price has fallen 15% YTD. - Manappuram Finance - The stock has been given a 4% weight in the portfolio. The stock is up 50% this year. - Home First Finance - The last stock in the financials space also holds a 4% weight in the portfolio. The stock price has risen 22% on a YTD basis.

Real Estate, Infra & Cement

The real estate, infrastructure, and cement sectors have also seen significant changes:

- DLF - The real estate developer has been given a 5% weight. The stock is down 6% on a year-to-date basis. - Macrotech Developers - The counter features with a 4% allocation. The share price is down 11% on a year-to-date basis. - Adani Ports & Special Economic Zone - The Adani Group company has a 4% weight. The share price has risen over 17% since the beginning of the year. - GMR Airports Infrastructure - The airports operator also carries a 4% weight. The stock is up 18% on a YTD basis. - Ambuja Cements - The cement player owned by Adani Group rounds off this basket with a 4% weight. The stock is up 8.21% since the beginning of 2025.

Industrials & Energy

In the industrials and energy sectors:

- ABB India - The stock has been given a 4% weight in the portfolio. The stock is sharply lower on a YTD basis, down over 20%. - JSW Energy - The scrip also features in the list with a 4% weight. JSW Energy shares are down 15% on a year-to-date basis.

Consumer & Telecom

The consumer and telecom sectors have also seen new additions:

- Zomato (Eternal) - The food delivery major has a 4% weight in the portfolio. The stock has been on a tear, up over 50% in the last 6 months. - Bharti Airtel - The telecom major carries one of the higher allocations at 5%. Airtel shares have recorded 23% gains since the beginning of the year.

Travel & Hospitality

The travel and hospitality sectors are not left out:

- MakeMyTrip - The online travel and ticket booking platform has been given a 4% weight. Listed in the US, the stock price is down 15% on a YTD basis. - Le Travenues Technology (Ixigo) - The scrip features a 4% allocation in the portfolio. The stock price has been on a roll, rallying 60% since the beginning of the year. - Lemon Tree Hotels - The hotel chain has also been assigned a 4% weight. The share price has risen 27% in the last six months. - InterGlobe Aviation (IndiGo) - India’s leading airline carries a 4% weight in the portfolio. IndiGo shares are up 23% in the last six months.

Automobiles

Finally, the automobile sector:

- TVS Motor Company - The two-wheeler major and manufacturer of iQube has been given a 4% weight. The stock has risen 26% in the last 1 year. - Mahindra & Mahindra - The SUV major that manufacturers Thar also features with a 4% allocation. M&M share price has risen 30% in the last 6 months.

These strategic changes reflect Chris Wood’s and Jefferies’ outlook on the Indian market, aiming to balance risk and reward across various sectors. Investors should consider these moves as part of their own portfolio management strategies.