{"id":367500,"date":"2025-08-23T15:08:12","date_gmt":"2025-08-23T15:08:12","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/367500\/"},"modified":"2025-08-23T15:08:12","modified_gmt":"2025-08-23T15:08:12","slug":"india-remains-the-worlds-strongest-long-term-market-story-jefferies-christopher-wood-at-et-wlf","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/367500\/","title":{"rendered":"India remains the world\u2019s strongest long-term market story: Jefferies\u2019 Christopher Wood at ET WLF"},"content":{"rendered":"

\u201cEverybody understands, India is a long term growth story,\u201d said Christopher Wood<\/a> at the ET World Leaders Forum<\/a> while speaking on Asia\u2019s equity strategy.<\/p>\n

He described India as \u201cthe best stock market in the long-term stock market story in the world,\u201d but acknowledged its structural challenges. Most capital expenditure in the past decade has come from the government rather than companies, and the private sector investment cycle remains weaker than expected.<\/p>\n

High valuations but lasting premiumOn valuations, Wood was direct. \u201cEvaluation wise, India is an expensive market.\u201d He explained that India has always traded at a premium compared with other emerging markets, reflecting the confidence investors place in its long-term growth. The real thrust in capex in India has been coming from the government in the last 10 years, said Wood.
He noted that foreign investors have reduced exposure in recent months, but the premium has usually held over time.Interest rates and Monetary PolicyLast year, the Reserve Bank of India followed a tighter monetary stance, which slowed credit and investment. But Wood pointed out that conditions are shifting. \u201cInterest rates in India are coming down,\u201d he said, suggesting the easier policy should help stabilise growth without undermining the stock market.
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Asset and wealth management boomWood praised the role of domestic investors in shaping India\u2019s markets. Despite volatility, systematic investment plans and equity mutual funds have attracted steady inflows. \u201cThe wealth management industry [is] a huge success in India; it is the most dynamic market in the world,\u201d he said.He highlighted that these inflows continued even during market corrections, reflecting growing household participation and trust in financial markets.<\/p>\n

\u2014 ETMarketingHub (@ETMarketingHub) <\/p><\/blockquote>\n

Stock Market consolidationAfter a strong performance last year, Indian equities are now in a period of adjustment. Corporate fundraising, through new listings and placements, temporarily capped market gains. Yet Wood described the slowdown as temporary. This year, he said, is one of \u201chealthy consolidation,\u201d which could provide investors with new entry points.
China, emerging Markets and trade shiftsBeyond India and the US, Wood pointed to structural shifts in trade. He noted that \u201cthe reality is more countries trade more with China. So, there’s a limit of how much they can compromise trade with US.\u201d<\/p>\n

He said trade between emerging markets continues to grow, with China\u2019s exports to the Global South increasing. A weaker dollar and long-term selling of US Treasuries by foreign central banks, he added, may also accelerate capital flows away from America.<\/p>\n

Risks from the United StatesTurning to global risks, Wood examined the fiscal and monetary position of the United States. He argued that Washington is under strain because of high debt servicing costs. \u201cThe Fed is been under such pressure to cut rates. Is simply because a Trump administration is desperate to get the interest rates down to reduce the cost of disservicing. This is this is the key part on the fiscal situation in America.\u201d<\/p>\n

He said that net interest payments and entitlement programmes such as Medicare and Social Security already account for 93.5 percent of federal receipts. \u201cSo that tells you that in any kind of downturn, the US fiscal situation stops working because the revenues will go down.\u201d<\/p>\n

On tariffs, he said plainly, \u201cThere is one source of revenue increase \u2013 tariffs.\u201d In July alone, tariffs brought in 27 billion dollars. While this gives temporary fiscal relief, he warned that \u201cthe risk of tariff, is that [it] turned out to be recession in the US.\u201d<\/p>\n

Wood added that the United States is \u201cgetting a major boost from exports to emerging markets,\u201d even as fiscal and monetary pressures mount at home.<\/p>\n

The AI bubble and US marketsWood also drew comparisons between the late 1990s technology boom and the current enthusiasm for artificial intelligence. \u201cAll the speculation on the Internet proved to be right in terms of the impact of the Internet on the global economy, but that didn’t help many of the stocks that went down. We’re having an even bigger overinvestment bubble in AI than we had with the Internet.\u201d<\/p>\n

At the same time, he acknowledged America\u2019s reliance on the sector. \u201cWithout AI investment, America would be a very weak economy,\u201d he said. \u201cAI is a big driver in the US stock market, and also the US economy.\u201d<\/p>\n

For India, Wood struck a confident note. Despite expensive valuations and the slow pace of private investment, he underlined that domestic participation, a stronger financial system, and easing rates will keep the country\u2019s growth story intact. As he put it, \u201cEverybody understands, India is a long term growth story.\u201d<\/p>\n