Flows to Indian equities are at risk as investors eye China: Chris Wood

Flows to Indian equity markets are at a risk as investors increase their fund allocation to China, wrote Christopher Wood, global head of equity strategy at Jefferies in his weekly note to investors, GREED & fear. That said, he believes India remains the best long-term equity story in Asian and the emerging market (EM) context.

In this backdrop, Investors, he said, are exiting consumer discretionary stocks instead of selling banks, which he said seems to be the right strategy as banks appear more attractive on a relative basis. The Nifty Bank Index, he wrote, is now trading at 13.7x 12-month