clsa india portfolio: CLSA tweaks India portfolio, fears de-rating in expensive capex stocks
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With Prime Minister Narendra Modi-led BJP failing to secure a simple majority on its own in the Lok Sabha election, global brokerage firm CLSA has tweaked its India portfolio to make it more defensive. It has replaced L&T with HCL Tech in India-focus portfolio. "Recognising these uncertainties, we take out L&T from our India focus portfolio and replace it with HCL Tech. L&T has been in our portfolio since its inception in January 2021 and outperformed by a huge 106.2ppt. ITC remains our preferred staples name," CLSA said. The brokerage is now clearly overweight banks, commodities, and IT along with insurance and staples. "Our exposure to Modi stocks is limited to ONGC and Reliance as these have rerated by less than 15% in the last six months. We fear de-rating in the expensive discretionary and capex space and prefer the valuation support in private banks," it said. On Modi stocks, it said the rally was led...