India in early stages of equity cult: Chris Wood

Says a change in capital gains tax can trigger a correction

- PUNEET WADHWA

India is still in early stages of an equity cult despite the rally in equities over the last few years, believes Christopher Wood (pictured), global head of equity strategy at Jefferies.

Any changes to the capital gains tax for equities, both longterm and short-term, in Budget 2024, he believes, can trigger a bigger correction than what the markets witnessed post the Lok Sabha election outcome on June 4 that saw the Bharatiya Janata Party (BJP) lose majority, though it was able to form the government with the help of coalition partners.

His conviction on the road ahead for the Indian stock markets stems from the rising participation of retail investors over the years, including in mutual funds, which Wood believes, is likely to continue.

The Indian stock market, he said, remains by far the most promising asset management story globally, even in the face of loss of majority for the BJP in the general elections earlier this year.