Home / Markets / Stock Markets /  Jefferies' Chris Wood on Indian market preference & possibility of US Fed easing up

Christopher Wood, Global Head of Equity Strategy at Jefferies in its Greed and Fear report said that his portfolio remains primarily geared to the domestic demand story in India. Wood's long-only portfolio for India underperformed last quarter rising by 4.2% in US dollar terms on a total-return basis, compared with a 6.8% gain in the MSCI India benchmark. 

It was a marginal underperformer in the first three quarters of this year, declining by 9.9% compared with a 9.4% decline in MSCI India. However, the portfolio is now performing almost in line with the benchmark since inception on 1 July 2021, rising by 2.7% compared with a 2.5% gain in the MSCI Index and a 1.6% increase in the Nifty Index, the recent Greed and Fear note stated.

“The portfolio is 40% invested in India, with a 27% exposure to China and another 11% allocated to Taiwan and Korean technology. The Indian exposure was a positive last quarter though the China exposure was clearly a negative. There is also a 24% allocation to energy, resources and gold. The portfolio remains primarily geared to the domestic demand story in India. It should be noted again that the stated performance of the absolute return portfolio is on a total-return basis," Wood said.

He highlighted that there have, as yet, been minimal earnings downgrades in the US, most particularly of the sort that would normally be expected in a recession and the other point is the surging US dollar, with the US Dollar Index up 16.4% so far this year, and the resulting impact on corporate profits.

“So if the outlook is not promising, GREED & fear has to admit that the one development that would undoubtedly reassure equity markets is any sign of a moderation in the Fed’s current hawkish stance," Jefferies' Christopher Wood said.

The Fed has approved rate increases of 0.75 percentage point at its last three meetings, most recently in September, bringing its benchmark short-term interest rate to a range between 3% and 3.25%.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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