Odds in favour of more near-term correction in Indian stocks: Chris Wood

Chris Wood believes the best way to play Indian markets is the upswing in the Indian property/real estate sector despite the rate hikes by the Reserve Bank of India (RBI)

Foreign investors will be anxious to up India weight on a meaningful correction, said Christopher Wood, global head of equity strategy at Jefferies in his latest note to investors, GREED & fear. He also warned that the odds favour more correction in the near-term in Indian equities, most particularly given the market action on Wall Street.

Growth stocks, he believes, still remain vulnerable to the US Federal Reserve tightening dynamic despite the losses already suffered. That said, the global investor believes Indian stock market remains the best structural growth story in Asia and emerging market (EM) equities for the next