According to reports from Jefferies, the investment bank is maintaining its focus on core strengths while keeping expansion options open in India. Country head Aashish Agarwal emphasized that while the firm remains squarely focused on its core strengths for now, it hasn't ruled out venturing into wealth or asset management down the road. As reported by Jefferies, Agarwal noted that "if the right opportunity arises, you never say never" regarding new verticals in the Indian market.
As reported by Jefferies, the investment bank believes India has always been a great watermark market, with real money being made by staying strong through uncertainty. The firm identifies 20-25% growth in infrastructure, power, and hard assets like real estate, hospitals, and hotels as key opportunities. According to Jefferies, these sectors are currently mid-caps or large small-caps that will see their index weights rise, representing the next phase of growth beyond traditional FPI-dominated sectors.
According to Jefferies, foreign portfolio investor sentiment has shown durable improvement over the last three months, with $5 billion in net inflows since mid-June. As reported by the investment bank, FPI outflows over the past two years were driven by slower growth in traditional heavyweights, which reduced India's weight in emerging market portfolios while markets like Korea and Taiwan saw their weights increase. The firm believes narrowing the earnings growth differential between India and other emerging markets will be the single most important trigger for sustained FPI flows.
As reported by Jefferies, country head Aashish Agarwal considers yield differentials and currency risk a critical blind spot for the market. According to the investment bank, narrowing yield spreads between the US and India put direct pressure on debt flows and create indirect currency risks for equities. Jefferies emphasizes that currency stability—not yield spread alone—is the key trigger for FPIs, noting that if foreign currency reserves keep the rupee steady, outflows remain manageable.
According to Jefferies, the investment bank has scaled up its business in India meaningfully over the last six to seven years across all three key verticals. As reported by the firm, unlike many American and domestic peers, Jefferies does not operate a commercial bank or leverage a corporate balance sheet globally. The investment bank remains focused on excelling in investment banking and equities, though it may evaluate new verticals such as wealth or asset management in the future as brand recognition grows across retail, HNIs, and corporate segments.
