Bernstein favours selective bets amid slower growth

Bernstein’s latest India portfolio reshuffle highlights a more selective investment approach as broader earnings momentum moderates and macro uncertainty remains elevated. The brokerage has added

, Paytm and Adani Ports while exiting Avenue Supermarts (DMart), indicating a preference for companies with visible company-specific catalysts rather than broad-based market exposure. Bernstein noted that NSE200 earnings growth slowed to around 8% in Q1 FY27 from 12.5% in the previous quarter, reinforcing the need for stock-specific opportunities. Eternal’s inclusion reflects its strong position in food delivery and quick commerce, with the brokerage seeing improving operating momentum and a strengthening competitive position. Paytm has been added as a potential beneficiary of a favourable outcome on merchant discount rates (MDR), which could support payment margins and earnings growth. Adani Ports, meanwhile, offers exposure to ports and logistics and is supported by a healthy balance sheet, pricing power and international operations. Bernstein has assigned targets of ₹350 for Eternal, ₹2,200 for Paytm and ₹1,973 for Adani Ports. In contrast, DMart’s exit reflects concerns over intensifying quick-commerce competition, urban consumption trends and the stock’s recent outperformance. Overall, the portfolio changes suggest that investors should focus on businesses with identifiable earnings triggers rather than expecting a broad-based market rally. While the selected stocks offer attractive company-specific opportunities, valuations, execution risks and a volatile macro environment remain key factors to monitor. Investors may therefore consider a selective approach, with preference for stocks where earnings visibility and catalysts support the investment thesis.