Finance1 min read

RIL, HDFC, Axis Bank, IndiGo, more: List of 12 stocks from Jefferies; shares to gain as FPIs embrace Indian markets

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In short

Between September 2024 and late 2026, foreign portfolio investors pulled a cumulative $61 billion from Indian equities, with financials enduring the heaviest blow at $17 billion in sector-level departures. Recent trading shows an aggressive turnaround, highlighted by $8.2 billion in net inflows since mid-October, including $5.8 billion recorded across just six sessions in November 2026. This influx is backed by domestic economic resilience, which supported a 1.5-percentage-point upgrade in MSCI India earnings estimates since late June 2026.

Key points

  • Jefferies picked 12 prominent large-cap stocks positioned to benefit from foreign investo…: Jefferies picked 12 prominent large-cap stocks positioned to benefit from foreign investors replenishing underweighted Indian market positions.
  • A potential cooling of the concentrated artificial intelligence trade could redirect vita…: A potential cooling of the concentrated artificial intelligence trade could redirect vital international portfolio allocations back into India.
  • Supportive market factors include light foreign positioning, reasonable large-cap valuati…: Supportive market factors include light foreign positioning, reasonable large-cap valuations, potential equity tax relief, and crude oil prices falling 20% from their October 2026 peak.

Sources checked by our analysis pipeline: 1

Jefferies Stock Picks: A potential revival in foreign portfolio investor (FPI) flows could put largecap stocks in the spotlight, with companies such as Reliance Industries, HDFC Bank, Axis Bank and Kotak Mahindra Bank emerging as potential beneficiaries.

In a latest report, global brokerage house Jefferies said that it believes largecaps are better placed to attract foreign money because of their higher liquidity and greater FPI ownership, following a prolonged period of overseas investor selling.

The brokerage has identified 12 stocks that could benefit from a reversal in foreign flows: Reliance Industries, HDFC Bank, Axis Bank, Kotak Mahindra Bank, Max Healthcare, JSW Energy, UltraTech Cement, IndiGo, Varun Beverages, Indian Hotels Company (IHCL), DLF and Sona BLW.

"Given higher liquidity and FPI ownership, we see large caps as the more direct beneficiary of revival in FPI flows. We highlight Reliance, HDFC Bank, Axis, Kotak, Max Health, JSW Energy, Ultratech, Indigo, Varun, IHCL, DLF, Sona BLW as plays on FPI reversal," said Jefferies analysts Abhinav Sinha, Priyank Shah and Aditi Singla.

FPI flows into Indian equities have shown signs of turning around after…

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