Jefferies favours Indian largecap stocks amid rising bond yields
Kotak Mahindra Bank moved higher in a quarterly results development.
7 Oct 2026 · Economic Times Markets, ET Stocks
Jefferies has suggested enhancing investments in large-cap stocks in India, citing their favorable valuations compared to midcaps. The brokerage has also added Kotak Mahindra Bank to its model portfolio and increased its weight in Reliance Industries. It emphasizes that large-caps present a better risk-reward scenario as earnings growth gap narrows.
The analysis
Against that, the stock is +1.8% on the day at ₹439.50, and has returned +15.3% over three months. It is trading close to its 52-week high, so expectations were already elevated going in. The banks sector has moved -4.0% over the same period, so Kotak Mahindra Bank is running 19.3 points ahead of its peers.
For Kotak Mahindra Bank, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
Market context
- The company directly in focus is KOTAKBANK.
- Sector exposure: Banks, Oil & Energy.
In this story
Related coverage
How Jefferies is reshuffling its portfolio as soaring bond yields give Nifty bulls sleepless nights
Jefferies increases weight in Reliance, 2 others; trims weight in 3 stocks in latest model portfolio changes. See list
Banks, RIL power Nifty's 1% rally ahead of RBI monetary policy decision
Reliance, Kotak Mahindra Bank, Welspun shares: Build model stock portfolio! Why Jefferies India is bullish on large-caps
Vodafone Idea zooms 12% after FPO sees 6x subscription; focus shifts to allotment, listing