Christopher Wood of Jefferies has said that he remains structurally overweight on Indian equities and that any sell-off in the market will provide opportunities for investors to buy stocks.
In his latest GREED & fear report, Wood said that from a macro perspective, Indian market looks similar to where it was in 2003 when the country embarked on the last property and capital expenditure cycle.
"If GREED & fear had to own one stock market globally for the next ten years, and not be able to sell it during that period, that market would be India," Wood said.
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“GREED & fear maintains a 20 percent weighting to the energy sector in GREED & fear’s long-only Indian portfolio," said the report.
This comes at a time when some foreign brokerage firms have downgraded Indian equities or have given a sombre outlook.
Morgan Stanley is seeing some consolidation ahead of Fed tapering, an interest rate hike by RBI in February and higher energy costs, and this, along with expensive valuations, has prompted the foreign brokerage firm to downgrade Indian equities to 'equal-weight' from 'overweight'.
Morgan Stanley’s downgrade comes after Nomura's rating downgrade and UBS' dull commentary. Nomura downgraded Indian equities last week citing stretched valuations, and also said that a lot of positives are already priced in.
UBS made some significant changes in its market positioning by lifting China to 'overweight', and generally reducing the cyclical markets to 'neutral' or 'underweight'.
The global brokerage firm said ASEAN continues to look attractive but Indian equities look unattractive citing the wide valuation gap.
Nifty50 has soared 53 percent in the past one year and Sensex has jumped 51 percent.
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