Jefferies reshuffles portfolio to use spare cash, sells 3 stocks and buys 6

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NEW DELHI: Global brokerage firm Jefferies, which had tactically raised cash during the peak of the market in September, has now redeployed the idle capital to buy 6 stocks and also sold 4 counters..

Jefferies has replaced Maruti Suzuki with Eicher Motors, Marico with Honasa (Mamaearth), and Power Grid with NTPC...

"We add Coal India, Honasa, Eicher, NTPC, HDFC Bank and ICICI Pru Life at the cost of cash, Marico, Maruti, Power Grid," Mahesh Nandurkar of Jefferies said, adding that cash is being redeployed as key macro concerns of higher US yields, rising oil prices and near-term state election results have subsided...

Notwithstanding any big external shock, the current market multiples can sustain given the strong domestic flows," Nandurkar said.. Maruti was replaced with Eicher because two-wheeler demand is expected to grow at a faster pace than passenger vehicles over the next 2 years..

It also caters to a much premium consumer, relatively unimpacted by inflation and demand slowdown," it said.. Jefferies has also increased the weight on Coal India by 3 percentage points citing improved earnings outlook and 7-8% dividend yield...

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