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Jefferies India report: Amid soaring US bond yields, which have put long-term pressure on the Indian stock market, Jefferies India has increased its weight in large-cap stocks. The global investment bank strongly believes that large-caps offer better risk-reward relative to mid-caps in the current market environment.
According to the latest Jefferies India report dated October 6, 2026, it announced an increase in weightage in Reliance Industries shares. The global investment bank also declared that it has added two more large-cap stocks to its model portfolio. Those two stocks are Kotak Mahindra Bank and Welspun Corp. However, Jefferies India has trimmed weightage in the rate-sensitive segments, NBFC and Real Estate.
Highlighting the reason for increasing weightage on the large-cap stocks, the Jefferies India report said, “We increase weight on Largecaps. We believe risk-reward is becoming more favourable for large caps on better relative valuations vs Midcaps, while the earnings growth gap is narrowing over FY26-28E.”
The latest Jefferies report also hints at a possible bottom in the making on Dalal Street, saying, “Markets are facing rising yields with the US 10Y Treasury yield above 5% (20+yr high), Japan's 10Y yield above 3% (30yr highs), and UK & German govt bond yields also moving higher. Apart from inflation, markets are also pricing in worsening fiscal balances, declining participation from foreign central bank buyers and large debt-funded capex for AI buildout. Our global equity strategist Christopher Wood believes that US 10Y yields above 5% create a growing risk for US equities.”
In an email interaction with LiveMint, Chris Wood, Head of Equities at Jefferies, said that equity investors can expect a boom in Indian equities once the correction in US bond yields begins. He had said the US government can't afford elevated US bond yields for long, and they might resort to US bond yield suppression, if not fixing US bond yields like Japan.
The global investment bank has added Welsoun Corp and Kotak Mahindra Bank shares in its Model Portfolio. It has increased the weightage of Reliance Industries Ltd shares.
“(We) increase weight on Reliance in our Model Portfolio with stock at attractive valuations (8.4x 1yr fwd EV / EBITDA, 23% below 10yr avg) and upgrade possibilities on higher GRMs. Kotak Mahindra Bank is added on leadership overhang removal, potential growth acceleration from 15%+ levels and stock at 1.8x P/ABV FY27E, ~50% disc. to 10-yr avg. We also add Welspun Corp, which should benefit (30%+ EBITDA and EPS CAGR over FY26-29E) from a multi-year upcycle in oil & gas infra spending in the US and the Middle East, supported by local manufacturing.”
The Jefferies India report also said that it is overweight on Eicher Motors.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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