Brokerage firm Jefferies has removed food delivery aggregator Zomato from its model portfolio and has also exited its holdings in the same. Another stock to drop out of the model portfolio is telecommunications giant Bharti Airtel Ltd.
Instead, the cash raised from Zomato’s exit has been used to increase the weight of the metal stock. Tata Steel and Hindalco have replaced the two excluded names in the Jefferies model portfolio.
Jefferies Current Model Portfolio
| Weight gain/gain | Removal/Weight Loss |
| Tata steel | Cash |
| Hindalco | Bharti Airtel |
| L&T | Zomato |
| The Dependency Industry | Maruti |
| State Bank of India | |
| IndusInd Bank |
Bharti Airtel has also been removed from the Jefferies model portfolio. Brokerage firms cite concerns about increased 5G capital spending, which may not be compensated in the near future with the help of increased tariffs. However, it continues to maintain a buy rating on the stock with a target price of Rs 855. Higher or earlier than expected rate hikes, stronger 5G adoption are some of the bullion triggers for the stock while pending rate hikes and slow 5G adoption are downside risks. .
In turn, Jefferies has increased his weight on metal stocks such as Tata Steel and Hindalco, including his portfolio of models. As a result, the weight of the materials sector in Jefferies’ portfolio rose to neutral from previously zero. Brokers believe that a peak in US interest rates and China’s reopening could add to the positive sentiment around the metal.
| Sector | Establishment |
| Finance | Obesity |
| HE | Underweight |
| Energy | Underweight |
| telecommunication | Underweight |
| Main Consumer | Obesity |
| Consumer Choice | Neutral |
| Ingredient | Neutral |
| Health | Underweight |
| Industry | Obesity |
| necessity | Obesity |
| Housing area | Obesity |
Jefferies also increased his weight on Larsen & Toubro which was trading near record highs, citing an increase in the broader capex cycle, including housing.
First published: IST
