INSUBCONTINENT EXCLUSIVE:
Ace market strategist Christopher Wood is calling on foreign investors to load up on India, saying there is more room to increase weight
In his weekly research note for investors 'Greed Fear', the MD and equity strategist at CLSA said the continuous FII capital inflows are a
proof of growing support for the ruling BJP after the air strikes in Balakot in Pakistan
Wood maintains double overweight on India.
Already, FIIs have ploughed in around Rs 26,000 crore, or $3.50 billion, into Indian stocks
since an opinion poll on March 4 gave the incumbent government an edge
All along, the weekly offering has stuck to the line that the BJP would win the upcoming general elections due in April and May
About the recent reforms, he said there was some economic pain following demonetisation and GST
What worries him more is slowing local flows which remain a big sticking point for India
“If the risk in India from a funds flow perspective remains that, inflows into local equity mutual fund would slow further
At least such flows would remain positive,” he added
Domestic equity mutual funds’ monthly net inflow, excluding arbitrage funds had declined to $0.7 billion (Rs 5,000 crore) in the first
two months of 2019, from an average of $2.5 billion (Rs 16,000 crore) in January-February 2018
“It is also the case that there is definitely room for foreigners to increase weightings as they have not added to their holdings in
Indian equities for three years,” reasoned Wood.
