Foreign investors have kept Indian equities at arm's length for most of 2026, with year-to-date outflows but things are turning. Global brokerages have watched closely to see whether that selling pressure would ease, and July offered the first real sign of a turn, with foreign portfolios turning net buyers again after months on the sidelines.
It is against this backdrop that Jefferies' Greed & Fear note carries added weight for Indian markets this week. Christopher Wood's Greed & fear has made its latest round of changes to its India long-only equity portfolio, dropping three names and bringing in three others as Jefferies leans further into the domestic growth story.
Wood's Portfolio: What's Out
HDFC Bank and PolicyBazaar have been removed from the portfolio. REC Limited also exits, with Wood noting the stock has still delivered a 228% return in rupee terms since it was added in December 2022, a reminder that an exit does not necessarily reflect a negative view on the stock itself, but a reallocation of conviction.
Jefferies portfolio has seen three stock dropped, three new picked.
Photo Credit: NDTV Profit
Wood's Portfolio: What's In
Multi Commodity Exchange of India (MCX) and eyewear retailer Lenskart Solutions replace HDFC Bank and PolicyBazaar. Jefferies' India research team, led by Prakhar Sharma, has just published a note on MCX flagging product and penetration opportunities as reasons to stay positive on the stock.
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CNBC-TV18Bajaj Finance replaces REC Limited. Wood points out this is not the fund's first stint with the NBFC. Bajaj Finance was removed from the portfolio in January 2024 and is up 49% since, while an earlier holding period between May 2015 and March 2020 saw the stock appreciate by 551%.
Elsewhere, Eternal's (formerly Zomato) weighting rises by one percentage point, funded by trimming Bharti Airtel.
India Preferred Bet In Asia
The reshuffle comes as Wood continues to position India as his preferred market within Asia Pacific ex-Japan, running a 12% weighting against a benchmark weight of 11.4%, a modest but deliberate overweight.
The conviction is backed by hard data. Bank credit growth has accelerated to a 17-18% range, the fastest pace in more than a decade, with corporate lending running at 20% year-on-year, ahead of agriculture loans at 17% and retail loans at 16%. Foreign investors turned net buyers of Indian equities in July, adding $2.45 billion, even as year-to-date outflows remain a steep $25.4 billion. On the debt side, foreign inflows into Indian government bonds have hit $8.7 billion since ownership was made tax-free in June, while a separate RBI scheme to attract NRI dollar deposits has pulled in $41 billion and is expected to double by September. The rupee, having bottomed at 96.96 to the dollar in May, has since recovered to 95.17, adding to the case that the currency backdrop is turning more supportive just as Wood adds to his India conviction.
Global brokerage firm Jefferies (led by Christopher Wood, Global Head of Equity Strategy) reshuffled its India Long-Only Model Portfolio as part of its 'GREED & fear' report.
The brokerage shifted focus toward exchange infrastructure, retail, and financial service platforms while stepping away from traditional banking heavyweights.
🔄 Key Changes in Jefferies’ India Portfolio
Exits & New Entrants (The Headlines)
HDFC Bank OUT ❌ ➔ MCX IN 🟢 (4% weight): HDFC Bank has been removed. In its place, Multi Commodity Exchange of India (MCX) enters with a 4% weighting.
PB Fintech (PolicyBazaar) OUT ❌ ➔ Lenskart Solutions IN 🟢 (4% weight): PB Fintech has been dropped, replaced by retail eyewear leader Lenskart Solutions with a 4% weight.
REC OUT ❌ ➔ Bajaj Finance IN 🟢 (4% weight): State-run power financier REC was removed (after delivering a massive ~228% gain since its inclusion in Dec 2022). Non-banking financial giant Bajaj Finance re-enters the portfolio at a 4% weight.
Weighting Adjustments
Eternal (formerly Zomato): Allocation increased to 5% (up +1%).
Bharti Airtel: Allocation reduced to 4% (down -1%) to fund the increase in Eternal.
📊 Top Holdings in Revised Portfolio
Following the reshuffle, the largest individual stock allocations (at 6% weight each) in the benchmarked MSCI India model portfolio belong to:
SBI Life Insurance (6%)
Adani Ports & Special Economic Zone (6%)
GMR Airports (6%)
🧠 Rationale Behind the Reshuffle
Capital Rotation: Wood rotated capital away from traditional lenders (like HDFC Bank) toward structural consumption, retail execution (Lenskart), and financial infrastructure (MCX).
Profit Booking: Exiting REC allowed the fund to lock in gains after a >200% rally since 2022 and redeploy into Bajaj Finance at an attractive entry setup.
Macro Drivers: The strategy update cites broad acceleration in India's bank credit growth (17%-18% YoY) led by corporate lending, strong auto/property demand, and foreign capital inflows as a solid foundation for domestic equities.
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