September 29, 2021

Great Indian Mutiny

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Chris Wood increases India’s weight by reducing China’s exposure; T-Street may have the best results in reducing fear – EzAnime.net

Future risks to Indian stock markets include the new variant of Govt-19, but the risk that the country will share with other countries. (Image: REUTERS)

When global markets met sales last week, national standards were adjusted to a maximum of 2% almost all the time. Jefferies, who added weight to India in his portfolio from the Asia-Pacific this week, said global stock (equity strategy) Chris Wood said the extraordinary downturn in the Indian stock market was driven by the activities of retail investors and easy cash flow. . While other emerging market pairs such as South Korea, Brazil and Hong Kong each adjusted more than 8%, the Sensex and Nifty recorded a slight decline last week despite the Morgan Stanley EM index falling 15%.

Factors contributing to the development of T-Street

The Sensex and Nifty are now down more than 1% to an all-time low, recovering from this week’s losses. Chris Wood wrote in his weekly newsletter, “Despite the high rating of 21.5x 12-month earnings, greed and fear remain structurally positive in the Indian market.” “A new real estate cycle has begun, and a broader capex cycle should come sooner or later, while the best companies have benefited from the integration of sectors such as residential property and housing finance and consumer finance in general.” He added. The market strategist favors the federal government’s pro-growth stance.

Future risks to Indian stock markets include the new variant of Govt-19, but the risk that the country will share with other countries. Meanwhile, the other risk is any change in the policy position of the Reserve Bank. The Reserve Bank of India recently raised its inflation forecast, but has not yet signaled a policy change. The Reserve Bank of India has raised the CBI inflation forecast for the current fiscal to 5.7% in August from 5.1% in June. Still, RBI bond purchasing continues under the Open Market Activities (OMO) scheme, but there is no talk of a rate hike yet, ”he said. The Reserve Bank has reiterated its support for the growing economy in recent months.

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India is less likely to act on risk mitigation measures

Reaffirming his brilliant view of the Indian stock market, Chris Wood said India is less likely to act on any global risk-reduction measures triggered by grassroots fears. India is performing better and China is not doing well, the former overweight has become neutral in the Asian portfolio. With this in mind, Chris Wood has cut money from China and Hong Kong and increased India’s weight by two per cent. “The weight will be added if India adjusts more aggressively to the fear of the extreme phase-under. Meanwhile, China will have a natural performance in the low fear if there is no regulatory noise,” Chris Wood said.

Stock portfolio in Asia

India weighs 14% in the Asia portfolio, which lags behind the MSCI AC Asia Pacific by 11.1% by 2.9%, excluding Japan. Some Indian stocks in the Asian portfolio include Reliance Industries, HDFC, ICICI Prudential Life Insurance, ICICI Lombard General Insurance, Godrej Properties and ICICI Bank.

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