- Most sectors, including real estate, oil, gas, and banks, experienced sharp declines
- Jefferies is bullish on 22 stocks, including HDFC Bank, Axis Bank, SBI, and UltraTech Cement
- Morgan Stanley added Adani Ports, Lenskart, and Prestige Estates to its focus list, removing Reliance
The Indian equity markets continue to feel the brunt of the ongoing global tension, with Nifty falling below a key support zone of 24,700 and registering a fall of almost 500 points on Monday. The sharp drawdown comes on the back of geopolitical uncertainty, with tensions growing in the Middle East.
This sharp fall has impacted most sectors, including the real estate, oil and gas and banks. However, even at a time when most sectors have faced immense pressure, global brokerages such as Morgan Stanley and Jefferies remain bullish on certain counters that are expected to do well in the face of global headwinds.
Jefferies' top picks
Jefferies' latest India strategy report has highlighted 22 stocks that the firm is 'overweight' on. These companies are usually long-term growth stories, and their prospects won't be impacted by global jitters.
The three top picks include banking giants HDFC Bank, Axis Bank and SBI, while AU Small Finance Bank also makes the cut, having received approval for becoming a universal bank last year. Jefferies' final picks in the BFSI sector are Bajaj Finance and Chola Finance.
Beyond financials, Jefferies shows a strong appetite for infrastructure, metals and real estate. The brokerage is overweight on cement makers UltraTech Cement and Ambuja Cement, alongside metal giants Jindal Stainless, JSW Steel and Hindustan Zinc. Its auto and energy picks feature Mahindra & Mahindra, TVS Motors, Bharat Forge, Coal India, Adani Energy and JSW Energy.
Rounding out the list are Bharti Airtel, GMR Airports, developers Lodha and Godrej Properties, and retail plays Vishal MegaMart and Eternal.
Morgan Stanley's focus list
Meanwhile, Morgan Stanley has recently made a few key changes to its focus list, with Adani Ports, Lenskart and Prestige Estates joining the list at the expense of Reliance Industries, Titan and Interglobe Aviation.
Barring these counters, the firm favours consumer-facing brands and infrastructure heavyweights. Its top picks include automaker Maruti Suzuki, retail staples Trent and Lenskart, and beverage maker Varun Beverages. Morgan Stanley also backs ICICI Bank, engineering major Larsen & Toubro and real estate developer Prestige.
Despite curating distinct portfolios to weather the storm, the brokerages found common ground on just two counters. Both Jefferies and Morgan Stanley are overweight on non-banking financial company Bajaj Finance and cement bellwether UltraTech.
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