Despite twin blows dealt by the lockdown and the second wave of the pandemic, India's stock market index Sensex managed to cross the 60,000 point mark for the first time in September 2021. Since then, there has been no looking back despite fluctuations and global headwinds, as Sensex currently looks strong above 62,000 points.
But this is just the beginning as the domestic index is set to zoom past the one lakh point mark within the next five years, according to the global head of equities for Jefferies, Chris Wood.
No reason to doubt Indian stocks
Wood added that if the Reserve Bank of India pauses rate hikes, there is no factor that could trigger de-rating of Indian stocks in the near term.
Maintaining an overweight rating on Korean and Taiwan firms along with Indian stocks, Wood said that they aren't too expensive.
While increasing the weightage for Godrej Properties and Bajaj Finance among others, Wood added Zomato and SBI Life Insurance to his Asia Ex-Japan long-only portfolio.
Political shift could disrupt growth
Wood also mentioned how India's self-confidence on the global stage is also reflected from moves such as defying western pressure to buy oil from Russia.
After highlighting the positives, Wood went on to say that Prime Minister Modi's defeat in the upcoming Lok Sabha elections can disrupt the India story.
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