Jefferies favours Indian largecap stocks amid rising bond yields

Jefferies has recommended increasing investments in large-cap stocks in India, pointing to their attractive valuations compared to midcap counterparts. The brokerage has added Kotak Mahindra Bank to its model portfolio and raised its weight in Reliance Industries.

Large-caps offer a more favourable risk-reward scenario as the earnings growth gap between them and midcaps narrows, according to the brokerage. However, exposure to rate-sensitive sectors has been trimmed due to rising global bond yields.