India’s macros have turned adverse on multiple fronts, says CLSA

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Published: April 9, 2018 5:53:54 PM

Despite risks going on the downside with respect to the MF flows, weak investment flows were observed in the month of March, report by global brokerage said.

sobha, sobha stock, markets, property sales, RERA, Bengaluru, Gurgaon, kochiA month back, CLSA’s Christopher Wood, who is bullish on India, showed his concerns in the near term.

Despite risks going on the downside with respect to the MF flows, weak investment flows were observed in the month of March, report by global brokerage said. The flows into the mutual funds are at 13-month lows in March 2018, CLSA told ET Now. The global brokerage also said that a sharp deceleration in the equity mutual funds is worrisome. “India macro has turned adverse on multiple fronts,” CLSA further said.

A month back, CLSA’s Christopher Wood, who is bullish on India, showed his concerns in the near term. In an interview to CNBC TV18 in November-17, Chris Wood had expressed that he would have liked to hold all 25 Indian stocks in his Asia portfolio, adding that he was already three times overweight on the country as compared to the benchmark.

Now he had cut down on hi weightage on India by 2 bps. Sharing that his portfolio contains many private sector banks, Wood said that there might be a risk of a pullback in these stocks. “My favourite area to own in India which I continue to own is private sector banks and affordable housing plays. Given the huge gains in these sectors last year, in the short-term I’m not expecting these stocks to move higher, and there’s clearly a risk of a pullback,”Chris Wood had said.

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