Private Sector Capex Drives India's Market Boom: Chris Wood
Chris Wood, Jefferies, shares his views on the Indian market, private sector capex, and the real estate cycle.
Private Sector CapexIndian Stock MarketReal Estate CycleConsumer TechFintechUs ElectionsReal EstateSep 20, 2024
Chris Wood, Jefferies, is firmly of the view that the private capex cycle is well and truly underway. He believes that the government capex cycle building infrastructure in the last several years has created a backdrop or a framework which is now enabling the de-leveraged private sector to take over the baton of the investment cycle.
Wood is also positive on the consumer tech and fintech space in India. He believes that this area is not going away, but it is a question of who will prevail. He also likes Indian financials, especially private banks, and believes that they are overdue for some outperformance.
The real estate cycle in India is also expected to continue its uptrend. Wood believes that there is huge pent-up upgrading demand, and the inventory in the top seven cities is at a multi-year low. He expects the property recovery to gradually broaden out, led by the high end, and hopes for some rate cuts in India in the next 12 months to make property more affordable.
On the global front, Wood believes that the US elections will have an impact on financial markets. He thinks that a decisive winner is what the market will most want to see, and a disputed election result would be the worst outcome. He also believes that a Donald Trump victory would be more risk-on, while a Kamala Harris victory would be more status quo.
In his current model portfolio, Wood has an India weightage of 20%, which is in and around the benchmark. He believes that India's neutral rating has increased dramatically, and global emerging market investors are now a little underweight India. However, in his long-term portfolios, he has much bigger weightings in India.
Wood's market view is positive in the short-term, medium-term, and long-term. He believes that India is the best stock market opportunity in the world, and foreigners will view any correction as a buying opportunity.
In terms of trades, Wood is bullish on gold mining stocks in the short-term, and recommends selling US Treasury bonds in the long-term.
Chris Wood is a renowned investment strategist and the Chief Market Strategist at Jefferies. He has been covering the Indian market for several years and has a deep understanding of the country's economy and stock market.efferies is a global investment banking firm that provides a range of financial services to its clients. The firm has a strong presence in India and provides research coverage on the country's stock market.
Frequently Asked Questions
What is Chris Wood's view on the private sector capex cycle in India?
Chris Wood believes that the private capex cycle is well and truly underway, driven by the government capex cycle building infrastructure in the last several years.
What is Chris Wood's view on the real estate cycle in India?
Chris Wood expects the real estate cycle in India to continue its uptrend, driven by huge pent-up upgrading demand and a multi-year low inventory in the top seven cities.
What is Chris Wood's view on the US elections?
Chris Wood believes that a decisive winner is what the market will most want to see, and a disputed election result would be the worst outcome.
What is Chris Wood's market view?
Chris Wood's market view is positive in the short-term, medium-term, and long-term, and he believes that India is the best stock market opportunity in the world.
What trades is Chris Wood bullish on?
Chris Wood is bullish on gold mining stocks in the short-term, and recommends selling US Treasury bonds in the long-term.
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