Even as FIIs continue to sell their positions out of India, CLSAs Christopher Wood says that If only he could, he would hold only Indian stocks in CLSAs Asia portfolio. In an interview to ET Now, Christopher Wood, Managing Director & Equity Strategist at CLSA said, “It’s dramatic how fund flows into Indian mutual fund industry have picked up ever since Mr Modi was elected. I’m three times overweight on India, because the benchmark emerging markets weighting for India is ridiculously low. I could very well have all 25 stocks in this portfolio in India.” He had pointed out to CNBC TV18 that he runs a portfolio of 25 stocks in all of Asia. “If I am running an India portfolio, not an Asian portfolio, I definitely would have added public sector banks. But I am only looking at 25 stocks in all of Asia,” said the expert.
Just yesterday, he had reiterated that India is one of the best performing markets in the Asian emerging markets. In an interview to CNBC TV18, Christopher Wood said yesterday, “ I continue to take the view that India of all the major Asian equity markets is the most promising long-term equity market with some great growth stocks.” In the same interview, the expert explained that PSU bank recap is a very good step for Indian markets. “The big missing link in the Indian story in the last few years has been the lack of a private sector investment cycle which is partly related to the asset quality problem in the banking system. So the good news is that we finally seem to have had a decision by the government to address the need for a recap of the public sector banks,” he told CNBC TV18.
Christopher Wood also shared his insights on demonetisation and its impact on the stock markets. “I do believe that demonetisation acted as a catalyst to further promote the use of financial assets and so the right thing to have done when you heard demonetisation if you are a stock market investor was to buy the stocks geared to financial assets, stocks like mutual fund companies, private sector banks, life insurance companies,” Christopher Wood pointed out.
Will the staggering mutual fund inflows continue? “ I am hoping it does continue…. I think there is a generational aspect in terms of the younger generation Indians are more willing to invest in financial assets and less culturally inclined to buy jewellery and gold. And then of course, the demonetisation has put a hole in the real estate sector. So all this promotes financial assets,” said Christopher Wood.