India favourable among EMs; bullish on renewable energy, real estate, e-commerce: Jefferies

Simon Powell, Global Head-Thematic Research, Jefferies, on Friday, said that among emerging markets (EMs), India looks like a great place to be in. Powell believes that there are a lot of quality stocks in India which will continue to see highs.

He said, "When you look at what our India strategists are suggesting, they're saying a strategy of growth at a reasonable price and there's a number of good quality stocks in India."

He added, "I think we do continue to see the market go higher. The outlook from an India perspective remains good. I think there's this rotation away from China, from China equities into other emerging markets and India looks like a great place to be in."

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Among sectors, Jefferies continues to be bullish on the Indian real estate space and the e-commerce space. Additionally, Powell explained that renewable energy as a theme is here to stay and he remains positive on it. He said, "From a sector point of view, we continue to be bullish on property developments in India; we continue to be bullish on the e-commerce space. So those are two specific spaces that I'd be looking at."

He further mentioned, "I think one big theme that we continue to see globally is the greening of the economies. And I think you're going to continue to see a significant shift towards the environmental sectors globally, but specifically also within India as well. So I'd be looking at some of those renewable energy names as well."

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When asked about the big themes that are going to work in 2022, Powell said, "We basically got three themes coming together at the same time for semiconductors and that basically is autonomous driving and the amount of chipsets that are going to be required for that theme over the next decade, throw in the continued growth of cryptocurrencies, bitcoins and NFTs, and NFT mining and then throw in the emergence of the Metaverse and the need for 3D rendering, chips, etc. So that's one big theme continuing forward."

"I think the other thing that investors should look at is the renewable space. Then finally, this is a bit of a niche. But think about cybersecurity. When I look for stocks in the US leverage to cybersecurity, I find lots of them. When I look in emerging markets, I don't find so many. I would urge people to look for cybersecurity names in emerging markets. I think there's going to be an emerging demand for their services and their products," he added.