INSUBCONTINENT EXCLUSIVE:
The recent correction in financial stocks should be seen as a long-term buying opportunity, said CLSA's chief strategist Christopher Wood in
his weekly note ‘Greed Fear’ on Thursday.
"There have been some fun and games in India’s financial stocks over the past week partly
driven by Reserve Bank of India announcements, and partly driven by the market discounting higher wholesale funding costs for nonbank
This setback should be viewed as a long-term buying opportunity," said Wood.
"Still portfolios with such exposures need to hedge the higher
oil price risk," he added.
The sell-off in financial stocks, particularly has been at the centre of the weak trend in market recently
Financial stocks have been weakening due to fear that there will be a contagion effect after ILFS default
The ET NBFC index has fallen nearly 15% in the last one month.
