Jefferies Bets Big on Large Caps as RBI Hikes Rates, Names HDFC Bank, RIL & Airtel Among Favourites

Jefferies says RBI's new tightening cycle, including a 25bp repo hike and another 50-75bp likely, will pressure equity valuations, favoring large-cap stocks. With rising inflation, higher bond yields and valuation compression, the firm prefers banks, HDFC Bank, Reliance Industries, Bharti Airtel and power utilities, as robust GDP and credit growth should support corporate earnings.