Chris Wood News

Subscribe to enjoy similar stories. India might be cheaper now than it was four months ago, but Chris Wood, global head of equity strategy at Jefferies, is not just celebrating bargains. He is also keeping a watchful eye on potential risks, particularly redemptions.

bond yields in the wake of the election of Donald Trump as the US President. He said the other negative for equities is that the liquidity situation has begun to deteriorate at a time when valuations are at historic highs.

Jefferies' global equity strategist Chris Wood said GMR Airports Infrastructure is being added to its India portfolio. Wood said, in his weekly Greed & Fear newsletter, that the airport operator's introduction into its portfolio will be at the expense of the reduction of weights in ICICI Bank, HDFC Bank and Axis Bank.

over 12 percent in this period.In the Nifty Private Bank index, barring 3 stocks - ICICI Bank (13.5 percent), Axis Bank (6.6 percent), and Federal Bank (4.5 percent), all other constituents have given negative returns in 2024 YTD. Bandhan Bank shed the most, down over 22 percent, followed by IDFC First Bank, down over 12 percent, HDFC Bank, down 11 percent and Kotak Bank, down 10.8 percent.

Gold prices hit all-time high on strong US inflation figures, Fed rate cut buzz. Silver price also climbs a new peak Drawing inspiration from the upward movement of gold, platinum surpassed the significant psychological threshold of $1,000 per ounce, reaching its highest point in almost four months. The White House emphasized the genuine and substantial threat of a potential attack by Iran on Israel, without disclosing specific timing details.

Also Read: Chinese Investors Snap Up Copper, Gold Stocks to Drive 10% Gains In the USA, manufacturing grew for the first time in one-and-a-half years in March, with significant increases in production and new orders. Similarly, China's manufacturing activity expanded for the first time in six months in March, signaling a recovery despite ongoing challenges in the property sector. However, analysts are anticipating that China will announce more stimulus measures to revive the challenges in the housing sector, which could further fuel demand for metals.

Mrinal Singh, CEO & CIO, InCred AMC, says “one can look at our cash as a proxy largecap allocation. We have kept that largely in anticipation of volatility in the market and we would look to deploy it as the market offers volatility at interesting prices.” Did you come across that note, kind of a very honest admission from Chris Wood in the Greed & Fear newsletter, saying that, yes, India is the best game in town right now with superior macros? All of that is fine, but a kind of admission that it is turning out to be quite expensive. As a practitioner, are you finding it challenging too? Mrinal Singh: Yes, that is a practical challenge, yes. We had the market run up significantly in the last 12-18 months where it makes it more challenging. Obviously, when the valuations are elevated, the potential returns get subdued, so you need to also manage the return expectations and you need to go down the ladder in terms of market cap, you need to actually dig deeper and we expect customers to have a higher horizon when they make an entry at this juncture. It does become challenging when the markets have a very sharp run up in a short span of time.

Chris Wood said he continues to believe that India is the best equity story in the world on a ten-year view. In his GREED & Fear newsletter, Wood said the Indian market-especially mid-caps-looks expensive but these valuations must be seen in the context of acceleration in growth led by a developing capex cycle. According to the report, Indian equities outperformed the world in dollar returns in the 11-year period between FY02 and FY12 when the country witnessed a private capex cycle.

Sensex beyond the 71,000 mark and making 21,000 the new pincode for Nifty, FIIs (foreign institutional investors) have been pouring in over Rs 3,900 crore daily on an average in December, making the 30-pack index stronger by 4,000 points so far in the month. NSDL data shows that in the first 10 days of the month, FIIs invested Rs 39,260 crore on Dalal Street. And now with the US Fed hinting at 3 rate cuts in 2024, the market could once again see a flood of foreign money chasing Indian stocks in the new year. The sharp uptick in FII flows comes after November's Rs 9,000 crore inflow and non-stop selling in September and October months. «This market has made a high despite the fact that we have yet to see significant FII inflows.

Christopher Wood, Global Head, Equity Strategy at Jefferies, says cryptocurrencies remain a “vulnerable asset class” but bitcoin stands to gain with the Federal Reserve planning to tighten liquidity and hike rates.

Christopher Wood, Global Head of Equity Strategy at Jefferies, has added another five percentage point allocation to Bitcoin in addition to the existing five percentage allocation initiated in December 2020. Wood has done this by reducing the weightage in gold by five percentage points.