Jefferies has announced a major revamp of its India model portfolio for 2026, adding six new stocks while cutting exposure to six existing holdings. The reshuffle reflects the brokerage’s updated outlook on sectoral opportunities, earnings visibility, and valuation comfort.

The stocks added to the portfolio include Axis Bank, AU Small Finance Bank, Bharat Petroleum Corporation Limited (BPCL), JSW Energy, Godrej Properties, and SAMIL. The brokerage believes these companies are well-positioned to benefit from structural growth drivers, balance sheet strength, and improving return ratios over the medium term.

At the same time, Jefferies has removed ICICI Bank, NTPC, Tata Steel, Crompton Greaves Consumer Electricals, Belrise Industries, and InterGlobe Aviation (IndiGo) from its 2026 model portfolio. The exit from these stocks signals profit-taking after strong past performance, concerns on near-term cyclicality, and valuation stretch in select cases.

The removal of IndiGo comes amid rising aviation fuel costs and margin pressures, while the exit from Tata Steel and NTPC reflects caution on metal and utility earnings cycles. On the other hand, the inclusion of BPCL and JSW Energy highlights the brokerage’s preference for energy transition plays with improving cash flows and balance sheets.

The addition of Axis Bank and AU Small Finance Bank indicates continued confidence in the banking sector, particularly in lenders with strong lending growth visibility and improving asset quality.

Jefferies’ periodic portfolio reshuffles are closely tracked by market participants as they often influence institutional fund flows and sentiment across large-cap and mid-cap segments.