Brokerage firm Jefferies has made tweaks to its model portfolio in its latest note on Friday, August 28, as part of which, stocks like Manappuram Finance Ltd., Hindustan Zinc Ltd., Navin Fluorine Ltd., and Meesho Ltd. have been included. While Jefferies will trim its exposure across select lenders to fund its inclusion of Manappuram, Hindustan Zinc will be a replacement for Jindal Steel, while Navin Fluorine will replace Ambuja Cements.
In its note, Mahesh Nandurkar of Jefferies wrote about the recent surge in gold prices in the global markets, highlighting that Indians hold gold worth nearly $4 trillion, nearly 4x the money they hold in stocks."If the recent surge in gold prices extends, which is our base case, on the back of concerns surrounding the US Dollar, wealth and spending would be likely visible," the note said.
Monetisation of gold savings via gold-backed loans has gained salience and could contribute to another 80 basis points in GDP Growth or spends accounting for a 10% increase in gold prices, which could partially be offset by a higher Current Account Deficit , the Jefferies note said.
Here's why the brokerage has made changes to its model portfolio:Jefferies has added Manappuram Finance as its preferred play on the accelerated monetization of household gold through formal lending channels. Gold prices are now nearing the $4,600 an ounce mark in the global markets, having gained nearly 15% in the month of August.
The month of August will become the best month that the yellow metal has had since 1999. The brokerage has also highlighted Titan, Kalyan Jewellers, MCX, IIFL Finance and Muthoot Finance as some of the other potential beneficiaries due to the rise in gold prices.
It has replaced Jindal Steel with Hindustan Zinc to gain exposure to the silver theme. Silver prices too are hovering around the $70 an ounce mark, having nearly halved from its peak of over $120, but looking to recover from the recent lows. Meesho has been added by Jefferies to its model portfolio as a play on mass discretionary consumption.
The stock has gained nearly 80% from its issue price of ₹111 but remains below its post-listing high of ₹254. Lastly, Navin Fluorine has become a part of the model portfolio of Jefferies as the brokerage sees growth levers across Contract Manufacturing , cooling products, specialty chemicals and advanced materials, which will contribute to the company's Earnings per Share growing at a Compounded Annual Growth Rate of 23% during financial year 2026-2029.