How CLSA changed its Indian focus stock portfolio in 2025

CLSA, a prominent brokerage firm, has reshaped its Indian focus portfolio for 2025, prioritizing affordable consumption and defensive sectors. In response to global macroeconomic challenges and domestic uncertainties, the firm has scaled back its exposure to banking while emphasizing resilience in its investment strategy.

Defensive Picks CLSA, a leading brokerage firm, has made significant changes to its Indian focus portfolio for 2025. Amid a challenging global macro environment and domestic economic uncertainties, the firm is favoring affordable consumption and defensiveness while reducing its exposure to banking. Here is a list of stocks CLSA has added and removed, along with its updated portfolio composition: NTPC CLSA has added NTPC to its portfolio, citing the stock’s correction and its alignment with the power theme.

With capacity additions expected in the first half of 2025, NTPC offers an attractive entry point and is well-positioned for growth. Tata Motors Tata Motors joins the portfolio after a 35% decline. CLSA believes the current valuation adequately prices in risks from a slowdown in commercial vehicles and the Jaguar Land Rover portfolio, making it an appealing investment.

Nestle India Nestle India’s addition reflects CLSA’s tilt towards affordable consumption. The brokerage highlights the significant declines in Nestle’s stock price as an opportunity to capitalize on expected recovery in rural incomes and consumption. Britannia Industries Britannia Industries has been included to enhance the portfolio’s defensiveness.

CLSA views the stock’s correction as a strategic entry point amidst a turbulent global macroeconomic environment. HDFC Bank HDFC Bank has been removed from the portfolio as CLSA adjusts weights to accommodate new entrants. The move aligns with the firm's reduced overweight on banks in anticipation of potential RBI rate cuts.

Current Portfolio Overview The revised portfolio emphasizes large-cap names poised for growth and defensiveness. It includes Reliance Industries, Tata Consultancy, ICICI Bank, ITC, Axis Bank, Oil & Natural Gas, SBI Life, Hindalco, Jindal Steel & Power, and IndusInd Bank. These selections, coupled with the recent additions, reflect CLSA’s focus on affordability and resilience amidst market volatility.

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