Chris Wood sees 100 bps cut in repo rate; hikes allocation in Axis Bank

The central bank has already slashed the repo rate by 75 bps since December 2018 when Shaktikanta Das took over reigns from Urjit Patel as the RBI governor

The recent developments in the Indian financial sector have made even global investors sit up and take notice. Christopher Wood, global head of equity strategy at Jefferies has done away with his holding in IndusInd Bank in his Asia ex-Japan long-only portfolio, and upped the existing investment in GRUH Finance (by 1 per cent) and Axis Bank (2 per cent).

That apart, Wood believes that the Reserve Bank of India (RBI) still has room to cut the repo rate by another 100 basis points (bps), or 1 per cent. The central bank has already slashed the repo rate by 75