Politics · India Bureau
Jefferies Identifies 12 Stocks To Attract Foreign Portfolio Investors
With foreign portfolio investors pulling out billions from Indian equities, brokerage Jefferies has named a dozen stocks across sectors it believes could reverse the outflow trend. The pivot comes as financials and consumer staples face significant headwinds from FPI withdrawals.
LSN India ·
Foreign portfolio investors have intensified their exit from Indian markets, triggering substantial sectoral outflows that have raised concerns among market participants and analysts. The financial services sector has borne the brunt, with FPI withdrawals totaling $17 billion since September 2024, while consumer staples have seen outflows of approximately $11 billion during the same period.
Against this backdrop, Jefferies has released a curated list of 12 stocks it believes offer compelling valuations and growth prospects capable of reversing the FPI exodus. The selection spans multiple sectors, with marquee names including Reliance Industries and HDFC Bank figuring prominently on the brokerage's radar. The recommendations reflect a strategic attempt to identify pockets of opportunity within a broader market facing headwinds from global capital flows.
Analysts attribute the FPI outflows to a combination of factors, including elevated global interest rates, stronger US dollar dynamics, and a reassessment of valuations in emerging markets. The withdrawal of such substantial capital has weighed on domestic bourses, prompting brokerages to identify counter-cyclical investment opportunities.
Jefferies' stock selections signal confidence in the resilience of India's corporate earnings and long-term growth trajectory, even as near-term sentiment remains challenged. The brokerage's recommendations are expected to provide investors with a framework for identifying quality assets during periods of FPI volatility.