Stock market has an unlikely rival; CLSA’s Chris Wood says affordability in this sector bad news for equities

By: | Published: June 15, 2018 4:11 PM

Sharing his plans for Asia portfolio (ex-Japan), Chris Wood also said that he plans to hike his existent investments in HDFC Bank and Indiabulls Ventures.

Chris Wood said that he plans to hike his existent investments in HDFC Bank and Indiabulls Ventures.

As affordability in real estate sector remains at the best level in 15 years, there is a possibility that high networth individuals may sell their holding in equities and invest in real estate instead, raising risks for the markets, a renowned global investor said. The Indian investors can now invest in the real estate sector, advised Christopher Wood. CNBC TV18 reported citing GREED & fear, a weekly note by Chris Wood, managing director, equity strategist at CLSA.

“One risk for Indian equities is that high net worth investors sell stocks to purchase real estate as evidence grows that the residential property cycle has turned up. This would be a negative caused by a positive. GREED & fear again recommends investors to buy into the Indian property sector if they have not already done so. Affordability remains at the best level in 15 years while developers’ pre-sales are rising,” CNBC TV18 reported citing Chris Wood.

Sharing his plans for Asia portfolio (without Japan), Chris Wood said that he plans to hike his existent investments in HDFC Bank and Indiabulls Ventures.

“The existing investments in HDFC Bank and Indiabulls Ventures will be increased by one percentage point each. These will be paid for by shaving the investments in IndusInd Bank and SBI Life Insurance,” Chris Wood added.

In April, Chris Woods had told ET Now that apart from ‘real private sector banks,’ he is bullish on the affordable housing theme and residential real-estate stocks. He said that he is particularly enthusiastic about the RERA enactment. “The areas I want to play most are affordable housing in India which is a five-year story and I want to play the real estate sector based on the consequences of this RERA legislation which I believe will lead to a healthy consolidation,” he had said in the interview.

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