Chris Wood of Jefferies has made fresh adjustments to his India long-only portfolio, adding coverage of InterGlobe Aviation (IndiGo), the country’s largest airline. IndiGo will now hold a 4 percent weight in the portfolio, with the allocation funded by exiting Coal India and reducing the stake in Thermax.
In his latest GREED & fear note, Wood also announced a shift in his global long-only portfolio, increasing investment in Alibaba by one percentage point. This adjustment will be balanced by trimming the stake in ICICI Bank by the same margin.
Addressing the recent market downturn, Wood attributed the sharp sell-off in Indian equities to technical factors rather than fundamental macroeconomic concerns. He noted that the Nifty has declined 14 percent from its peak, while the Midcap index has fallen 19 percent, largely driven by aggressive foreign investor selling.
ALSO READ: Chris Wood's Greed & Fear cuts exposure to Nvidia and TSMC, ups HDFC Bank weightage
The downturn has been particularly severe in high-beta domestic cyclical sectors such as real estate, infrastructure, and industrials—last year’s top performers. Wood pointed out that while his India portfolio had outperformed the Nifty by 18.7 percent in US dollar terms as of December 17, it has underperformed by 12.1 percent since then due to its heavy exposure to these sectors.
Looking ahead, Wood emphasised that any renewed easing by the US Federal Reserve would be a boost for emerging markets, including India, as a weaker US dollar would be broadly beneficial. He also noted that a softer dollar would align with the interests of former US President Donald Trump.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
