**Jefferies Restructures India Portfolio Following Historic US Trade Pact** **Strategic Portfolio Shifts** Jefferies has aggressively reorganized its India model portfolio in response to the newly signed India-US trade agreement (February 2026). The brokerage has **boosted weight in the Metals sector**—moving it to an "overweight" position—and added **Eternal (Zomato)** to the portfolio, citing its improving risk-reward profile and strong growth in quick commerce. To fund these additions, the firm **trimmed its exposure to the IT sector** (specifically paring stake in Infosys) and removed **Godrej Consumer Products**. **Trade Deal Catalysts** The reorganization follows the landmark reduction of US reciprocal tariffs on Indian goods from **50%** to a flat **18%**, alongside India’s commitment to lower barriers for US imports. This policy shift is expected to reverse the trend of Foreign Portfolio Investor (FPI) outflows, which totaled **$34 billion** over the preceding 16 months. **Key Beneficiaries Identified** Jefferies highlights specific sectors poised to gain from lower tariffs and shifting energy supply chains: * **Metals:** **Hindustan Zinc** (leveraging silver exposure and cost advantages) and **JSW Steel** (anticipating domestic price hikes) are top picks. * **Auto Ancillaries:** Companies with significant US exposure, such as **Sona BLW** and **Bharat Forge**, are seen as direct gainers. * **Chemicals:** **Navin Fluorine**, **PI Industries**, and **SRF** were flagged for potential export boosts. * **Renewables & Textiles:** Solar manufacturers like **Waaree Energies** and textile exporters like **Welspun Living** are expected to benefit from improved competitiveness against peers like Vietnam. * **Adani Group:** Stocks including **Adani Enterprises**, **Adani Power**, and **Adani Energy Solutions** are projected to gain from deepened energy trade and infrastructure linkages. **Market Reaction** The Indian markets reacted sharply to the deal. The **Nifty 50** surged approximately **2.5%** to cross the **25,700** mark, while Adani Group stocks rallied up to **13%** in a single session, reflecting immediate investor optimism around the structural benefits of the pact.