India Market Brief: Portfolio Shifts & Economic Anchors The Indian equity landscape is witnessing a strategic realignment as institutional leaders adjust to evolving sector dynamics. Jefferies' Christopher Wood has executed a significant reshuffle in his India long-only portfolio, signaling a pivot toward power infrastructure and large-cap aviation. Strategic Rebalancing In a notable move, Wood has added **Adani Power** and **InterGlobe Aviation (IndiGo)** to the flagship GREED & fear India basket. Both stocks have been assigned a **4% allocation** each. To fund these entries, the portfolio has exited positions in Home First Finance and the travel platform Le Travenues Technology (Ixigo). This shift highlights a preference for industrial scale and dominant market players over niche finance and small-cap travel tech. The inclusion of Adani Power follows the group's massive **$100 billion** investment plan for AI-ready data centers and renewable energy infrastructure, while the move to IndiGo reflects its commanding **62% market share** in a recovering aviation sector. Market Context & Performance The reshuffle comes at a time when Indian equities are navigating a period of sideways movement. As of late February 2026, the **Nifty 50** is trading near the **25,178** mark, reflecting a broader market consolidation. Despite recent volatility, Wood remains **overweight** on India. He notes that while the MSCI India index has underperformed emerging market peers by **41%** on a total-return basis since late 2024, the structural story remains intact. Key performance metrics for the new portfolio additions include: * **Adani Power:** Current market cap stands at approximately **₹2.73 trillion**, with a 1-year return of over **41%**. * **IndiGo:** Shares are trading near **₹4,933**, with institutional block trades recently exceeding **₹100 crore**, signaling strong liquidity and professional interest. Macroeconomic Foundations India’s economic fundamentals continue to provide a robust "double engine" of growth. The GDP growth for **FY26** is estimated at **7.4%**, maintaining India's status as the fastest-growing major economy. Real GDP growth for **Q3 FY26** surprised on the upside at **7.8%**, driven by a **7.6%** expansion in gross fixed capital formation. Domestic liquidity remains the primary shock absorber for the market. While Foreign Institutional Investors (FIIs) have shown intermittent selling pressure—with recent daily outflows of roughly **₹3,465 crore**—Domestic Institutional Investors (DIIs) have countered with net purchases exceeding **₹5,031 crore**. Structural Resilience The market is increasingly "locally anchored" due to consistent retail participation. Monthly SIP inflows have stabilized between **₹25,000 crore and ₹30,000 crore**, providing a steady stream of domestic capital that mitigates the impact of global volatility and US interest rate shifts. Industry-wide manufacturing growth at **8.4%** and a resilient construction sector further support the overweight stance on industrials. These factors, combined with ongoing policy reforms, underpin the long-term structural opportunity Wood continues to champion in the Indian market.