Christopher Wood, Global Head of Equity Strategy at Jefferies, reduced his allocation to Indian equities by 1% on October 2.
Christopher Wood, Global Head of Equity Strategy at Jefferies
Christopher Wood, Global Head of Equity Strategy at Jefferies, has reduced exposure to Indian equities by 1% as of October 2. This move comes in response to rising volatility in domestic markets. Despite the cut, Wood remains ‘overweight’ on Indian markets, signaling continued confidence in the country’s growth potential.
In contrast, Wood has increased China’s market weightage by 2%, although he has been ‘underweight’ on China in recent times. This shift is a strategic move to benefit from the recent rally in Chinese equities. Additionally, Wood trimmed the weights of Australia and Malaysia by 50 basis points each, while maintaining an ‘overweight’ stance on both.
Wood’s latest note also highlights potential risks from geopolitical tensions in the Middle East, particularly between Iran and Israel. He warns that an escalation in the crisis could significantly impact global markets, including India, which he believes are not fully prepared for such shocks.
On October 2, global markets experienced a risk-off sentiment, driven by rising geopolitical tensions. This has pushed crude oil, bond yields, and safe-haven assets higher, while global equities saw a slight decline. Chinese shares, however, continued their stimulus-driven rally despite cautious sentiment. Indian markets were closed on October 2 in observance of Gandhi Jayanti.
Wood’s strategic adjustments reflect his cautious outlook amid ongoing global uncertainties, positioning for potential shifts in market dynamics.
