Gurgaon: Indian markets would see a lot of noise and volatility in the run-up to elections, Christopher Wood, managing director and equity strategist at CLSA, said on Wednesday. Wood said he cut his India rating to double overweight from triple overweight early this year.
“I will raise my allocation to India if I see evidence of a pick-up of the investment cycle, which I think will be next year,” Wood told reporters at the CLSA India forum.
Indian markets to be volatile until general elections: Christopher Wood
The Sensex is down 10.1% from its record high of 38,989.65 on 29 August.
He expects a lot of noise in India due to state elections, but believes these are more important to the opposition than the ruling party.
The biggest risk to the rupee and the economy, according to Wood, is due to externalities of the US dollar.