Rising oil prices a key threat to Indian equities, says CLSA's Chris Wood

Wood says his base case remains that Narendra Modi and the BJP will win again, albeit probably with a reduced majority.

The main risk to investors in Indian equities, from a US dollar return perspective remains the rising oil price, writes Christopher Wood, managing director, equity strategist at CLSA in his weekly note GREED & fear. 

Prices for global benchmark Brent crude shot above $80 a barrel Thursday, as Washington’s decision to reinstate sanctions on Iran extended a rally that has pushed the market to their highest level since 2014. In the past one year alone, Brent oil price has flared over 56 per cent, data shows.

Besides the rupee and oil, another threat for the Indian markets, Wood highlighted recently, was