Chris Wood

Will remain slightly Overweight India in the Asia Pacific ex-Japan relative-return portfolio, says Christopher Wood, global head of equity strategy at Jefferies in his GREED & Fear note to investors.

Energy-related stocks remain the best hedge against a Ukraine-triggered spike in energy / oil prices, Wood said

He believes India remains the best long-term equity story in Asian and the emerging market (EM) context

In terms of sectors, Wood remains bullish on the real estate sector and suggests the Indian realty market to be one of Asia's hottest investment bets, besides Singapore

A rally in the US markets amid hope of a softer central bank (US Fed) action going ahead, analysts believe, has the potential to fuel a rally in other global equity markets, including India

Corporate earnings in the US, meanwhile, are likely to be under pressure amid recession fears. Analysts have already started cautioning investors as regards a drop in earnings

Most global markets have staged a smart recovery since their June 2022 lows. The S&P BSE Sensex has outperformed its peers with a rise of around 13 per cent since then

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In his Asia Pacific ex-Japan asset portfolio, allocation to Indian equities at 16 per cent is the second highest after his exposure to China, which stands at 31 per cent.

Further evidence of economic resilience and animal spirits, according to Wood, is continuing strong goods and services tax (GST) revenues and buoyant retail sales

The US Fed raised the target range for the federal funds rate by another 75 bps to 2.25-2.50 per cent in its July meeting. The FOMC statement has downgraded its assessment of the economic situation

The latest consumer inflation (CPI) print in the US for June came in at 9.1 per cent - the highest reading since 1981, and surpassed most analysts' expectations, who had pegged this at 8.8 per cent

As regards valuations, Nomura believes stocks have largely (if not fully) priced in expectations of higher policy/discount rates. They expect the markets to remain choppy in the near-term

In the short-term, Wood suggests that investors should sell stocks on a rally. The bet for a sustained equity market rally before 2022 end is a possible change in the US Fed's language, he said

Given the macro headwinds - the need to tighten monetary policy combined with the risk of a much higher oil price, are the key reasons Wood has been in no hurry to add to the 'overweight' position

Maruti Suzuki posted a 58% rise in fourth-quarter net profit at Rs 1,839 crore. PM Modi said that he aims to make India a hub for semiconductors for the world. Read more on these in our top headlines.

This process, according to Wood, is already well underway with Netflix now down 69 per cent year-to-date (YTD)

Foreign portfolio investors exited India in droves and have sold stocks since October 2021 amid fears of an earlier and faster-than-expected rate hike by the US Federal Reserve (US Fed)

Despite the likelihood of an aggressive rate hike by the US Federal Reserve (US Fed), a correction in equity markets, analysts expect the primary market action to stay on track, albeit a minor hiccup

A similar view was shared by Raamdeo Agrawal, co-founder and joint managing director, Motilal Oswal Financial Services, who suggested that Indian equity markets were on the cusp of a major bull-run