With US stocks trading at nearly 19.2x forward earnings, global investors, Wood suggested, should continue to reduce positions in favour of Europe, China and India
In its recent GREED & fear note Wood said, in the base case, it expects the Russia-Ukraine conflict to continue in the months leading US presidential election in November.
This, he wrote in his weekly note, GREED & fear, will be paid for by reducing the existing investments in Bajaj Finance, Oil & Natural Gas Corporation (ONGC), and Reliance Industries (RIL)
The target implies an upside of nearly 62 per cent from the current levels. Wood believes that India remains the best structural story across world markets.
Will remain slightly Overweight India in the Asia Pacific ex-Japan relative-return portfolio, says Christopher Wood, global head of equity strategy at Jefferies in his GREED & Fear note to investors.
In his Asia Pacific ex-Japan asset portfolio, allocation to Indian equities at 16 per cent is the second highest after his exposure to China, which stands at 31 per cent.
Christopher Wood, global head of equity strategy at Jefferies reiterates his bullish view, remains structurally overweight on India, and would look to buy Indian stocks on every decline
For the market to have a real nasty unwind at the global level, Wood believes there needs to be a catalyst in the form of an economic downturn or a material tightening in US Fed policy
Wood has rejigged his exposure to Indian stocks in his Asia ex-Japan long-only portfolio with HDFC Bank and ICICI Bank paving the way for Cipla. Besides, he remains bullish Reliance Industries.
