Chris Wood of Jefferies ups stake in Macrotech, DLF, MakeMyTrip, and Zomato; trims Axis Bank and US exposure | Stock Market News

Christopher Wood, global head of equity strategy at Jefferies, has reshuffled his Asia ex-Japan and global long-only portfolios, making notable changes in his Indian holdings. He increased his exposure to Indian real estate and online travel stocks while trimming stakes in select banking and technology names. Wood also recommended reducing exposure to US equities, citing their high valuations and weakening earnings growth, while advocating for greater exposure to European, Chinese, and emerging market stocks.

Indian Realty and Online Travel Stocks Gain Favor

In his latest weekly note to investors, GREED & fear, Wood revealed significant changes to his Asia ex-Japan long-only portfolio, signaling a bullish stance on India’s real estate sector. He has removed his investment in Godrej Properties, reallocating funds to increase his stake in Macrotech Developers by one percentage point to 4 percent. Additionally, he introduced a new position in DLF Limited, assigning it a 3 percent weight, highlighting his growing confidence in India’s property market amid improving economic conditions.

In a further portfolio shake-up, Wood added MakeMyTrip, an Indian online travel company, with a 4 percent weight. This new investment was funded by removing his stake in Axis Bank, indicating a preference for growth-oriented, consumer-facing tech stocks over traditional financial institutions.

He also raised his stake in Zomato by one percentage point, financed by reducing his investment in Taiwan Semiconductor Manufacturing Company (TSMC). The move underscores his conviction in India’s digital economy and its growth potential, particularly in the food delivery and travel segments.

Within his India long-only portfolio, Wood made another notable adjustment by increasing his investment in Reliance Industries (RIL) by two percentage points. This was funded by cutting his holdings in HDFC Bank and State Bank of India (SBI) by one percentage point each. The shift reflects his confidence in RIL’s diversified business model and growth prospects, despite trimming his exposure to the banking sector.

US Equities Out, Emerging Markets In

On a broader scale, Wood recommended that investors sell rallies in US equities and increase their allocations to European, Chinese, and emerging market stocks, which he believes offer better earnings growth potential. He highlighted the relative expensiveness of US stocks and their weakening earnings outlook compared to other regions.

“US remains comparatively expensive while US earnings growth continues to deteriorate at a time when Europe, China, and even Japan are all experiencing positive earnings revisions,” Wood noted in his report.

He also expressed concerns over the upcoming US auto tariffs, scheduled to be implemented on April 2. The 25 percent levy, which is higher than initially anticipated, is expected to weigh heavily on the global auto industry. Wood believes the impact will be particularly negative for Japan, where automakers are already grappling with industry headwinds and slowing demand.

Indian Markets Stage a Strong Recovery

Wood’s increased exposure to Indian equities comes as the domestic stock market staged a smart comeback from its recent lows. The Nifty 50 index surged 6.6 percent to nearly 23,600 levels, driven by strong buying interest in public sector stocks. During this period, the Nifty CPSE index, which tracks central public sector enterprises, jumped 14 percent, reflecting renewed investor confidence in government-backed firms.

Bullish on India, Cautious on US Markets

Overall, Christopher Wood’s latest portfolio realignment underscores his growing confidence in India’s real estate and digital economy while signaling caution on US equities. His increased exposure to Macrotech Developers, DLF, and MakeMyTrip, along with a larger stake in Zomato, reflects a strategic shift towards growth-oriented and consumer-facing Indian stocks.

Meanwhile, his recommendation to reduce exposure to US equities highlights his preference for emerging markets, Europe, and China, where he sees stronger earnings growth potential. As global markets face rising geopolitical and economic uncertainties, Wood’s strategic pivot underscores a broader trend of shifting capital flows towards higher-growth regions.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.