Brokerage firm Bernstein updated its India model portfolio on August 19, adding Adani Ports, Eternal, and Paytm while removing Avenue Supermarts. The changes reflect a focus on specific corporate performance drivers rather than broad market trends, as the firm maintains a cautious outlook on overall equity market returns.
Global brokerage Bernstein recently reshuffled its India model portfolio, making significant changes to its holdings. Effective August 19, 2026, the firm added Adani Ports, Eternal (formerly Zomato), and Paytm (One97 Communications) to its 13-stock portfolio. At the same time, the brokerage exited its position in Avenue Supermarts (DMart), signaling a strategic shift in how it views retail and logistics-linked businesses.
The decision to remove Avenue Supermarts highlights concerns about the retail sector, specifically the intense competition from the rapidly growing quick-commerce segment. Bernstein noted that this rising pressure is a significant risk for traditional retailers like DMart, which may face challenges in maintaining its urban market share and growth momentum. This exit reflects a cautious view on how traditional consumption models will fare against newer, faster delivery platforms.
In contrast, the inclusion of Eternal is driven by its strong position in the quick-commerce space. The brokerage sees potential for continued growth in this area as these platforms expand their reach. Similarly, Adani Ports was brought into the portfolio, supported by its strong balance sheet and solid business execution in the logistics and port infrastructure sector. For Adani Ports, the brokerage has set a target price of Rs 1,973.
Paytm’s entry into the portfolio is tied to a specific regulatory catalyst. Bernstein pointed to the potential implementation of a Merchant Discount Rate (MDR)—a fee charged to merchants for processing payments—which could help improve the company's margins and revenue. While this adds a potential boost to the stock, the move also carries risks, as any delay or change in regulatory policy regarding transaction fees could affect the company’s financial performance. The brokerage set a target price of Rs 2,200 for Paytm, suggesting it views this as a high-potential, albeit sensitive, play.
Despite these stock-specific adjustments, Bernstein maintains a guarded view on the broader Indian equity market. The brokerage has kept its Nifty 50 index target at 26,000, suggesting that investors should not expect a broad, easy rally across all sectors. The firm’s strategy emphasizes picking individual winners based on specific catalysts rather than betting on a general rise in share prices across the board. Investors tracking these changes may want to monitor the actual implementation of the MDR policy for payment firms, competitive dynamics in the retail sector, and the quarterly earnings execution for the newly added companies to see if they deliver on these expectations.