Jefferies increases weight in Reliance, 2 others; trims weight in 3 stocks in latest model portfolio changes. See list

Jefferies has raised the model portfolio weights of Reliance Industries and Kotak Mahindra Bank, and added Welspun Corp, in its latest changes. Reliance, favoured for its valuation and potential earnings upgrades, last traded at Rs 1,217.60 after falling 7.5% in one month and 7.4% in three months, leaving it 24% below its 52 week high. Kotak Mahindra Bank, backed by stronger growth prospects, was at Rs 439.05, up 1.7% on the day and 15.1% over three months. Welspun was included on expectations of oil and gas infrastructure expansion. The three reduced positions were not identified in the material provided.

The changes may support sentiment toward selected large companies rather than signal broad sector strength. Reliance could benefit if attractive valuation leads to earnings upgrades, while oil and gas infrastructure spending may improve demand visibility for Welspun Corp. Kotak Mahindra Bank could gain if its growth prospects remain stronger than those of the banking sector, which declined 4.2% in one month and 3.8% in three months. Oil and energy was down 1.1% over one month but up 0.7% over three months. Actual earnings upgrades, sustained banking growth and infrastructure orders would confirm the reading. Weaker growth or delayed spending would undermine it.