Indian equity market’s resilience may be a signal that a new investment cycle is nearer at hand than the consensus thinks, said Christopher. Markets are now driven by politics instead of central banks, according to Christopher Wood, an equity strategist at investment group CLSA. ABOUT Christopher Wood. Christopher worked at ABN Amro Asia and Deutsche Morgan Grenfell before joining CLSA in as global strategist for Emerging.
|Published (Last):||2 May 2012|
|PDF File Size:||17.59 Mb|
|ePub File Size:||15.78 Mb|
|Price:||Free* [*Free Regsitration Required]|
CLSA’s Christopher Wood Takes Aim at BoJ Chief
It also should be positive for the government in terms of them getting re-elected. Read more on Indian Stock market. A stable coalition can lift Nifty past 12,; may fall to 10, if weak: The Sensex is up The other area where I would take advantage of the recent correction to add to the exposure chrkstopher the affordable housing area. China is more interesting in the short term than India: Fill in your details: Will be displayed Christopuer not be displayed Will be displayed.
In my view, the residential property markets are still in an early stage of recovery after an extended downturn. In the short term, it depends on cclsa you believe there is going to be a trade deal at the G summit or not. That to me is a pleasant surprise. But the key issue right now is not the equity funds, it is the bond funds given what happened on the NBFCs.
CLSA maintains its double overweight stance on India. NIFTY 50 10, 2. Never miss a great news story! Wood said this would mean that the stock market will be much more resilient to monetary tightening and a higher oil price than currently chridtopher.
This will alert our moderators to take action.
I think it is too late to reduce positions in India but based on my base case that the Modi government gets re-elected next year but with a reduced majority and that we get evidence of a capex cycle, I would be looking to raise my weightings early next year. Actually India was performing better than my base case expectation in the first eight months of this year but then we had the shock of a default by a triple AAA rated company which triggered some significant downside that obviously was not my base case.
That has made it harder to read the data series.
So how does this change christooher equation for markets and especially for liquidity? A non-BJP government in not impossible: How would you map the risk-reward ratio for equity as an asset class?
Asia is the market that has been hit most by the so called US-China trade war.
Use correction in financials to buy for the long term: CLSA’s Chris Wood | Business Standard News
Find this comment offensive? I would not put it stronger than. The problem from macroeconomic stand point is that all the top-down data in India has been heavily distorted by the two events of demonetisation and second structural reforms in case of GST implementation.
Fill in your details: I definitely think that but there is a technical issue which we cannot ignore and that technical issue is that the legitimacy of credit ratings has been badly damaged if not destroyed which would mean that the market is now going to pay more attention to the parentage of these companies because they do not trust the credit ratings and there is a regulatory issue of what the regulators are going to do to address this area, because clearly this is not an area the regulator warned about before the problem happened.
Read more on CLSA. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. There will be more slowdown than previously anticipated but clearly a lot of that slowdown has been probably more than discounted in the sharp selloff.
But that trend has been very strong and domestic institutional investors are still pouring in money via the SIP route. My hope is that the worst has been seen in this area. I reduced it to double overweight. I am increasingly confident that capex has started to pick up: Wood said Indian market has been resilient as the country is primarily a domestic-driven economy. But I completely agree with what you just said that the indications are that the investment cycles are on the point of turning and the resolution of some of these NPAs is a hugely significant and constructive development.
My Saved Articles Sign in Sign up. The delivery of affordable homes is a long-term growth story which is very positive for those companies exposed to it.
To see your saved stories, click on link hightlighted in bold. But when we met in April, you had reduced your overweight position in India. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. I am telling investors to own quality property stocks that will benefit from the healthy consolidation of the residential property sector which will be the consequence of the double shock of demonetisation and RERA.
Are you confident that the capex cycle has picked up or is about to pick up in India? This will alert our moderators to take action. However, we are not out of the woods completely because we still have US monetary tightening going on. The pleasant surprise this year has been the equity inflows have been maintained to a greater degree than most of us were expecting.