Adding the airport operator to its portfolio would reduce its weighting in ICICI Bank, HDFC Bank and Axis Bank, Wood said in his weekly newsletter Greed & Fear.
In the Asia (excluding Japan) portfolio, the company has divested its investment in HDFC Bank and added GMR Airports Infrastructure.
Other Indian stocks in Jefferies’ India portfolio include Reliance Industries, Zomato, SBI Life Insurance, Macrotech Developers, Godrej Properties, State Bank of India, ICICI Bank, Axis Bank, JSW Energy and Larsen & Toubro.
GMR shares rose 2.4% to ₹ 93.92 on Friday.
Jefferies initiated coverage on the stock on May 26 and rated it a buy with a price target of ₹ 100. GMR operates airports in New Delhi and Hyderabad – two of the busiest airports in India.
“GMR airport is evolving from a utility to a retail consumption space and is expected to benefit from strong air traffic growth scenario, travel retail opportunity (led by higher consumption), increase in aero tariffs and real estate unlocking opportunity,” Jefferies said in a late May note.
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