InvestorQ : Is it true that Chris Wood has added to his weightage on India?
Dilmini Mercia made post

Is it true that Chris Wood has added to his weightage on India?

Dawn Cherian answered.
10 months ago

One of the most renowned investors in the world and a master of emerging market investing, Chris Wood has increased his exposure to India to 10.5% of his portfolio. This was disclosed in his popular report, “GREED & FEAR”.

Currently head of Jefferies, Chris Wood has hiked allocation to Indian equities in his Asia Pacific ex-Japan portfolio by 100 basis points while his exposure to HDFC Bank specifically is up by 200 basis points. Wood things the 2.6X forward P/B for HDFC Bank is a steal.

Wood is also very positive on the home financing story in general and HDFC in particular. With the surge in affordability due to lower interest rates and the correction in residential property prices, Wood also prefers HDFC as a good stock play for the long term.

Some of the stocks in the Indian portfolio include HDFC, Reliance Industries, Maruti, SBI Life, ICICI Lombard, DLF and Cipla. AT a macro level, Wood appears to be positive on the India equity story from a medium to long term perspective, riding on the recovery.

However, not every global investor appears to be gung ho on the Indian markets. Morgan Stanley, for example, is very cautious on Indian markets and is especially cautious on the banking and financial sector, where the risks are fairly elevated.