Jefferies Shifts Focus to Gold as India's Hidden Stimulus

Jefferies has revamped its India model portfolio by adding four new stocks and dropping one outright. The brokerage believes that gold, not equities, is becoming a key driver of growth in India.

The new additions include Manappuram Finance, Hindustan Zinc, Meesho, and Navin Fluorine, all of which have been given a Buy rating by Jefferies. Manappuram Finance is seen as the direct play on gold-loan monetisation through formal lending channels.

Hindustan Zinc replaces Jindal Stainless to add exposure to the silver rally running alongside gold's. Meesho is the discretionary-consumption leg, with Jefferies framing it as a play on gold wealth filtering into mass-market spending. Navin Fluorine is added for its expected 23% EPS CAGR through FY26-29.

The brokerage estimates that Indian households hold around $3.9 trillion worth of gold, nearly four times the amount held in equities. It believes that only about 15% of household gold is currently monetised, leaving significant headroom for growth.