Posted May 21, 2014 11:02 pm by Comments

In a May 16th interview published this week, Christopher Wood, equity strategist at Hong Kong-based securities house CLSA Asia-Pacific Markets, says the landslide win for the Bharatiya Janata Party (BJP) in the general elections bodes well for both India and the Indian stock market. Wood has had a “double overweight” on India because polls were showing that the BJP would win a decisive mandate, giving it a chance to have a “reasonably effective government.”

In addition, he mentioned:

The one important thing that really matters for the stock market and economy is—will the investment cycle resume in India? If the investment cycle resumes in next one to two years, this will be the first leg of a new bull market in India. I, personally, am giving the benefit of doubt to the fact that an investment cycle will resume.

He latter commented:

I would think India is looking extremely attractive in the emerging markets space at large. The reason is, India is not geared into the China story. The Chinese economy is slowing, China is getting into a difficult structural adjustment. So, emerging markets that are geared to the commodity cycle are facing a negative structural headwind and India is not geared into that side of story.
Wood concluded by saying that among the BRIC (Brazil, Russia, India and China) markets, India ranks #1 for him. He also added that in his current Asian portfolio, he has Indusind Bank Ltd (NSE: INDUSINDBK), ICICI Bank Ltd (NYSE: IBN), HDFC Bank Limited (NYSE: HDB)Housing Development Finance Corp Ltd (NSE: HDFC) and GRUH Finance Ltd. (NSE: GRUH) with Indian banks being the biggest sector in the portfolio (around 20%).

To read the whole article, India is No.1 destination among BRIC nations: Christopher Wood, go to the website of LiveMint.

Similar Posts:

Leave a Reply