Jefferies' Chris Wood Adjusts India Portfolio: Key Sector Shifts
Chris Wood, Jefferies' long-time India bull, has made significant adjustments to his India portfolio, dialing down capex-heavy names and adding consumer-facing and financial plays. Here's a detailed look at the shifts across six sectors.
India PortfolioChris WoodJefferiesSector ShiftsMarket PivotReal EstateJun 21, 2025
In the financials sector, Wood has made notable changes. He removed industrial lender REC from the Asia ex-Japan thematic portfolio and introduced new names in retail finance. Home First Finance and Manappuram Finance were added to the India long-only portfolio with 4% weightings each, reflecting a growing optimism around the consumer credit cycle. The Indian stock market has seen a decent rally off the early April low, aided by a more dovish RBI governor. Bajaj Finance, which Wood continues to track, has seen a 35% year-to-date increase, benefiting from the RBI's front-loaded rate cuts and CRR reduction.
Real estate remains a key conviction for Wood. He has maintained a hefty 19% weighting to property developers in the India portfolio, even as he removed Godrej Properties. “GREED & fear still has a 19% weighting in property developers,” Wood emphasized, noting that “the property market, now in its 5th year of an upturn, has further to run.” DLF, Macrotech Developers, and Aditya Birla Real Estate remain core holdings. Jefferies’ Abhinav Sinha expects pre-sales for top developers to accelerate to 22% in FY26, up from a four-year low of 17% in FY25.
In the industrials sector, Wood has marked a shift away from investment-driven themes. He has cut exposure to capital goods entirely by removing Larsen & Toubro and Thermax. The market focus has rotated to playing consumption rather than investment, Wood noted, though he added that GREED & fear “has not given up on a private capex cycle.” ABB India remains the only industrial name held, reflecting a pared-down approach to the infrastructure theme.
In line with the consumption pivot, Wood has added TVS Motor with a 4% weight and retained Eternal (Zomato) and InterGlobe Aviation in the India long-only portfolio. Wood reiterated that “consumer finance stocks have rallied sharply” on the back of monetary easing and shifting investor preferences. The broader tone suggests growing comfort with urban consumption and aspirational discretionary demand.
In the telecom and digital platforms sector, Bharti Airtel has received a 1 percentage point increase in weighting. Wood continues to back the stock on digital expansion themes. PolicyBazaar (PB Fintech), another digital platform, also saw its portfolio weight increase by 1 percentage point.
In a clear signal of selectivity, Wood has exited Larsen & Toubro, Thermax, and Godrej Properties. These names had previously represented bets on India’s infrastructure and premium housing cycle. The exits suggest a tightening lens on valuation and earnings momentum, with Wood opting to redeploy capital toward names better aligned with current market themes.
Overall, Wood’s adjustments reflect a strategic realignment to capitalize on the changing market dynamics and maintain a balanced portfolio amidst the evolving economic landscape in India.
Frequently Asked Questions
What are the main sectors Chris Wood has adjusted in his India portfolio?
Chris Wood has made adjustments in the financials, real estate, industrials, consumption and autos, telecom, and digital platforms sectors.
Why did Chris Wood remove Godrej Properties from his portfolio?
Wood removed Godrej Properties to tighten the focus on valuation and earnings momentum, aligning with the current market themes.
What new names did Chris Wood add to the retail finance sector?
Wood added Home First Finance and Manappuram Finance to the India long-only portfolio with 4% weightings each.
How has the real estate sector been affected by Wood’s adjustments?
Wood has maintained a 19% weighting in property developers, reflecting his continued optimism about the real estate market, despite removing Godrej Properties.
What is the main reason for the pivot from investment to consumption in Wood’s portfolio?
The pivot from investment to consumption is driven by the market's shift in focus and the broader economic trends, including monetary easing and growing urban consumption.
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