Jefferies cautious on Indian markets due to 'unsustainably high' domestic inflows

Emcure Pharmaceuticals

16/09/2024 10:13

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    ** Jefferies reduces weightage of Reliance Industries
 RELI.NS  and Amber Enterprises  AMBE.NS , increases HDFC Bank 
        ** Brokerage replaces Larsen & Toubro  LART.NS  with
Siemens  SIEM.NS  in its India model portfolio; adds Emcure
Pharma  EMCU.NS  and Interglobe Aviation  INGL.NS   
    ** Brokerage "overweight" on telecom, autos, consumer
staples and utilities, while remaining "neutral" on industrial
and "underweight" on energy
        ** Says changes reflect green shoots on consumption
  
        ** Jefferies says combined domestic inflows, through
mutual funds, direct participation, insurance and pension funds
are at "unsustainably high" $7.5 billion per month between
January and August
  
        ** "An estimated quarter of financial savings going to
stock market, which makes us uncomfortable on near-term equity
outlook and specifically small and mid-caps and industrials"
  
    ** Jefferies says it has near-term cautious view on markets,
small- and mid-caps, industrials and global cyclicals
    ** India's Nifty  .NSEI  and Sensex  .BSESN , among the best
performing global markets in 2024, hit a record high on the day,
up 17% and 15%, respectively, this year
    ** Small-  .NIFSMCP100  and mid-caps  .NIFMDCP100   have
outperformed the benchmarks, rising 29% and 30.5% over the same
period

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Jefferies India model portfolio: Sectoral weightage and view   
https://reut.rs/47xbDGe
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 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))