New Delhi: Global investment banking firm Jefferies has signaled its strong confidence in the Indian stock market by expanding its equity strategy ‘buy list’. Jefferies has added nine major companies from various sectors to its prestigious list, including the heavyweight Reliance Industries. This move comes at a time when the Indian market is balancing domestic strengths against global uncertainties, creating new opportunities for investors.
Which Companies is Jefferies Betting On?
The new list released by Jefferies includes companies that represent key pillars of the economy. It focuses not only on established giants but also gives importance to leaders in emerging sectors. The newly included companies are:
- Reliance Industries: A dominant force in energy, retail, and telecom.
- Coforge: A rapidly growing company in the IT sector.
- Siemens Energy: A key player in the energy and power infrastructure space.
- Adani Ports: India’s largest port operator.
- AWL Agri: A well-known name in the edible oil and FMCG sector.
- Sun Pharma: A titan in the pharmaceutical industry.
- Mankind Pharma: A pharma company with a strong hold on the domestic market.
- GMR Airports: A significant name in airport infrastructure.
Additionally, Jefferies has maintained its confidence in the banking and financial sector, retaining HDFC Bank and ICICI Bank on its list.
What’s the Rationale Behind This Confidence?
According to the Jefferies report, there are solid reasons behind selecting these companies. Regarding Reliance Industries, the firm believes that the potential for tariff hikes in Jio and strong growth in the retail business could lead to double-digit EBITDA growth. The report also states that the value of Reliance’s new businesses, such as new energy and data centers, is not yet fully reflected in the stock price, leaving significant room for future growth.
Similar positive expectations exist for other companies:
- Adani Ports is projected to see a 15% CAGR in cargo volume and a 19% CAGR in EBITDA.
- Siemens Energy has a massive order book and is expected to benefit significantly from India’s growing power capex.
- Companies like Coforge and Sun Pharma are poised for strong growth in their respective sectors, backed by robust order books and new product launches.
Market Environment and Future Outlook
This move reflects a broader positive outlook on the Indian economy. In recent weeks, the market has made a strong comeback, driven by domestic factors like positive GDP figures and reforms in the GST structure. Although Foreign Institutional Investors (FIIs) remain cautious, the confidence of Domestic Institutional Investors (DIIs) is supporting the market.
Experts believe that such “buy” recommendations from major firms like Jefferies can further boost investor confidence. It demonstrates that despite external uncertainties, India’s growth story remains strong, and there are excellent opportunities for long-term investors to invest in quality stocks.
