Christopher Wood Bets on Indian Stock Markets Bottoming Out
Brijesh Pathak, Dy CM, at Financial Literacy conference of BSE Image credit BSE India
Indian Equity Markets Near Bottom, claims equity strategy head at Jefferies
By S Jha
New Delhi, November 29: Legendary stock market guru Christopher Wood has claimed that Indian bourses after sharp corrections may be bottoming out. Wood has argued that the corrections in the Indian stock markets may be getting over.
“The Indian stock market could be bottoming out after the sharp correction,” Wood has argued. He is global head of equity strategy at Jefferies. His remarks came amid FII-led selloff in the Indian stock markets for the last two months.
“There is a reasonable possibility that the Indian stock market is bottoming out after a correction,” stated Wood in his recent weekly note to investors, GREED & fear. He has argued that corrections in the Indian bourses were targeted at “more expensive mid-cap stocks”.
Market participants claim that over 30 per cent of the small and the midcap stocks corrected in 30-50 per cent range amid the FII-led selloff. The selling spree of the FIIs netted over ₹1 lakh crore withdrawal by the foreign investors from the Indian equity markets in the last few weeks.
The legendry equity market guru has recently said that he would book profits in bitcoins at $1,50,000. The sharp rally in the bitcoins came with the victory of Donald Trump in the US Presidential elections.
Wood in his note to the investors ranked the private banks as the positive sector. “The private banks now see reduced liquidity pressures with deposits and loans growing,” added Wood in the note. He took positive views of the record inflow in the equity-linked Mutual Funds in October. Incidentally, the stock market sharply corrected in the month of October.
The private banks seem resilient in the comeback rally in the street. The HDFC Bank has led from the front after the Nifty began bouncing back from the levels of 23300. The State Bank of India also has been seen to be resilient with the scrip holding on to the levels above ₹800.
The market participants claim that the FIIs have begun buying into the Indian stock markets this week. The FIIs are taking a favourable position in the Indian equity markets on the back of sharp corrections.
Also, the FIIs had been selling the Indian stakes in the stock markets to buy into the China exchanges. But the FIIs per market participants have been disappointed at the scale of the stimulus package unveiled by China so far.
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