Mumbai: Jefferies has removed Zomato from its India model portfolio and added Tata Steel and Hindalco as part of a larger shift in its equity strategy towards selected banks, industries and conglomerates in anticipation of an uptick in the broader capital spending cycle including the housing sector

“We are gradually becoming aware of the potential for increased competitive activity in this sector (online food delivery) as its main competitor, Swiggy, has recently lost market share,” Jefferies said in a client note.

The investment bank said the reopening of China’s economy, along with a peak in US interest rates, bodes well for industrial commodities such as metals and crude oil which could benefit from increased demand and price stability.

As part of the Indian model portfolio, the weight is on

and now stands at 2.5% respectively compared to 0.8% and 1.1% respectively.

From a sector perspective, it has maximum exposure to banks and finance at a weight of 39.6% – two percentage points over the same weight. Inside the BFSI room,

remains the top choice with a weight of 11.9% (against a neutral weight of 7.9%) followed by a weight of 8% (versus an equivalent weight of 2.9%).

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