Global equity strategist Chris Wood has launched a devoted extended-only India portfolio of 16 stocks, such as marquee scrips such as Reliance Industries Ltd, HDFC, SBI and other folks. Christopher Wood – Jefferies’ international head of equity technique – is banking on India’s future demand prospective and resilient domestic stock markets. The ace industry strategist has been overweight on India in his Asia ex-Japan portfolio considering the fact that the year started he has maintained his position through the extreme second wave of Covid-19.
In his weekly GREED & worry newsletter, Chris Wood highlighted that India has usually had a important representation in his extended-only Asia ex-Japan portfolio. This portfolio was launched almost 19 years ago, but for some cause, a devoted portfolio for India was not developed. “This will now change primarily because GREED & fear would like to add more Indian stocks which is not possible in the regional long-only portfolio since the idea is that these long-only portfolios, none of which can own cash, should be reasonably concentrated,” he stated.
Although Chris Wood admits that with Sensex close to all-time higher it is surely not a ideal time to commence an Indian portfolio, he remains convinced of India’s stock industry. Among the key bets in his new portfolio is the Real Estate space with 17% weight. “GREED & fear remains convinced that India is at the start of a new housing cycle after a seven-year downturn, after the mother of all consolidations in the developer industry, which is why there will be a 17% weighting in the property sector,” he added.
India extended-only portfolio, by Chris Wood: Full list of stocks with weightage
Reliance Industries Ltd (RIL) – 10% weight
Oil & Natural Gas Corp (ONGC) – 10% weight
ICICI Lombard General Insurance – 8% weight
ICICI Bank – 7% weight
HDFC – 7% weight
Bajaj Finance – 7% weight
ICICI Prudential Life Insurance – 7% weight
Maruti Suzuki India – 5% weight
Jubilant FoodWorks – 5% weight
State Bank of India – 4% weight
DLF Limited – 4% weight
Tata Steel – 4% weight
Godrej Properties – 8% weight
TVS Motor – 5% weight
Container Corp of India – 4% weight
Century Textiles – 5% weight
Other Asian markets with devoted extended-only portfolios involve China and Japan. Unlike the Asia portfolio, the newly crafted India one will have 16 stocks as an alternative of 21. Since inception the Asia portfolio is up 3,266% compared to 746% boost in MSCI’s AC Asia ex-Japan index. The portfolio has assigned 12% weightage to India against 9.8% in the MSCI index. “The portfolio is now 31% invested in India and 27% in China, with another 25% allocated to Taiwan and Korean technology. The portfolio continues to be primarily geared to the domestic demand story in Asia,” Chris Wood stated.