Mumbai, September 10, 2025 — Global research and brokerage firm Bernstein has announced a strategic overhaul of its India-focused equity portfolio, introducing five new stocks and exiting six existing holdings, including IT major Infosys. The revision comes after a six-month review period and reflects Bernstein’s evolving sectoral preferences amid a volatile global macroeconomic backdrop.
The rejigged portfolio now includes HDFC Bank and PB Fintech, signaling a renewed emphasis on financial services and consumer-centric growth. Bernstein cited strong underlying fundamentals, sector alignment, and lagging year-to-date performance as key reasons for the additions. The firm’s India portfolio has delivered a 9.8% return over the past six months, outperforming the Nifty’s 8.5% gain during the same period.
In a co-authored note, Venugopal Garre, Managing Director and India Head of Research at Bernstein, emphasized a simplified portfolio construct comprising 11 stocks, with a tilt toward consumption and financials. “We continue to lean towards consumption over capital expenditure, alongside opportunities to participate in the potential re-leveraging cycle,” Garre wrote.
The decision to exit Infosys was driven by a combination of factors, including changes in coverage and a reassessment of sectoral risks. While Bernstein acknowledged improved valuations and lowered expectation risks in the IT sector, it maintained a neutral stance on both IT and healthcare, citing potential policy volatility between the US and India.
Bernstein’s overweight positions now concentrate on financials, telecom, and select consumption plays, where structural tailwinds and earnings visibility remain strong. Industrial stocks have been rated underweight due to concerns over government capital formation momentum, while utilities remain neutral with selective bullishness.
The portfolio revision underscores Bernstein’s adaptive strategy in navigating India’s dynamic investment landscape, shaped by shifting global alignments, domestic manufacturing trends, and technological disruptions such as artificial intelligence. The firm’s latest moves are expected to influence institutional sentiment and sectoral flows in the coming quarters.
