Jefferies strategist Christopher Wood has overhauled his flagship “GREED & fear” India portfolio, citing stretched valuations in mid-cap shares and a surge in equity fundraising that he says could temper market gains. In his 20 June note, Wood removed Larsen & Toubro, Thermax and Godrej Properties, replacing them with Manappuram Finance, TVS Motor and Home First Finance, each assigned a 4 percent weight. He also lifted holdings in PB Fintech and Bharti Airtel by one percentage point apiece. Despite the cuts, the portfolio keeps a 19 percent allocation to property developers, with Wood arguing the housing up-cycle is only in its fifth year. Wood warned that the Nifty Midcap 100 is trading at 27.1 times forward earnings after rising 25 percent from April lows, while companies have rushed to capital markets, raising about US$7.2 billion in May and a further US$6 billion in June. The strategist views that fresh supply, rather than macro conditions, as the main near-term risk for equities. Jefferies maintains a constructive view on Indian real estate, noting the sector’s index has climbed 35 percent since 7 April yet remains 14 percent below its June 2024 peak. Wood expects the Reserve Bank of India’s dovish stance to culminate in another 25-basis-point policy rate reduction later this year, which could lower mortgage costs and sustain demand in the affordable and mid-income housing segments.