Chris Wood

Despite global investors shifting focus to AI-driven markets like Korea and Taiwan, Jefferies strategist Christopher Wood believes India's market remains attractive due to strong domestic participation and resilient midcap performance.

HDFC Bank share price stayed under pressure on Monday, March 30, extending its recent slide after a sharp fall in the previous session, as sentiment weakened following Jefferies’ Christopher Wood’s decision to drop the stock from key portfolios, according to the latest GREED & Fear report.

Wood points out that India's equity narrative is driven by domestic inflows and corporate earnings rather than foreign investment. Despite macroeconomic challenges, he notes significant earnings acceleration, underscoring a resilient market outlook.

The GREED & Fear report emphasizes India's dual narrative on AI: potential disruption to IT services and significant opportunities for growth. India aims to establish itself in the AI landscape while addressing the challenges.

India is emerging as a 'reverse AI trade' with a strategic partnership between Anthropic and Infosys to develop custom AI agents. This shift positions Indian IT firms as key enablers of AI adoption despite recent declines in IT stock performance.

Indian equities are struggling in 2025 with significant foreign selling and stretched valuations. Despite this, domestic inflows have prevented deeper losses. Jefferies forecasts improvement in India's macro outlook, but warns of risks from political giveaways and valuation vulnerabilities.

Gold price is currently trading around $4,012/oz, and Chris Wood believes a correction of about 16% could create an attractive buying opportunity, aligning with the 200-day moving average of $3,371/oz.

Christopher Wood of Jefferies has added Ambuja Cements, Ixigo, and Lemon Tree Hotels, each with a 4% weighting. Reliance Industries and Axis Bank were removed, and the weights of ICICI Bank, REC, and JSW Energy were reduced by one percentage point.

In his latest GREED & fear report, Chris Wood has suggested that gold prices could climb as high as $6,600 per ounce in the long term, based on historical benchmarks and the growth in US disposable income per capita.

Christopher Wood of Jefferies warns that the belief in the TACO trade's safety is waning as tariff threats could have significant macroeconomic impacts. Investors are underestimating the risks associated with escalating trade tensions, which could lead to a market correction.