Now Reading: Chris Wood: AI trade unwinding could bring FIIs back to India
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Chris Wood: AI trade unwinding could bring FIIs back to India
Jefferies' Christopher Wood said the unwinding of the artificial-intelligence trade could become a trigger for foreign investors to return to Indian equities, as capital that moved from India to South Korea and…
Jefferies' Christopher Wood said the unwinding of the artificial-intelligence trade could become a trigger for foreign investors to return to Indian equities, as capital that moved from India to South Korea and Taiwan is now flowing into US Treasuries.
Wood told The BroadView that foreign money left India not because of a loss of faith but because of stronger returns in South Korea and Taiwan. The structural growth story for India remains intact, and he expects FIIs to return when the AI trade blows out completely, though he did not give a timeline.
Wood also said a sharp rise in US Treasury yields could force Washington to cap bond yields, weakening the US dollar and making emerging-market assets more attractive. He expects the RBI to reduce tightening by 50 bps in the next two months and is slightly overweight on Indian banks, preferring NBFCs for their entrepreneurial structure.
Indian Opinion Analysis
Both timesnownews.com and livemint.com report Wood's views neutrally, but they frame the trigger differently. Timesnownews.com leads with the AI trade unwinding as the main reason for FII return, emphasising Wood's structural-growth thesis and the potential dollar weakness. Livemint.com leads with the KOSPI and Taiwan shift and gives more space to Wood's portfolio changes, including the replacement of ABB India with Hitachi Energy India. The common thread is Wood's unchanged long-term bullishness on India. The AI trade's trajectory and US Treasury yields remain the key variables. Investors should watch for a complete AI blowout and any US intervention in bond yields as signals for FII flow reversal.
Coverage: 3 sources, 3 neutral
Sources (3): timesnownews.com (neutral report), livemint.com (neutral report), livemint.com (2) (neutral report)
This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry.
Updated: this story now draws on 3 sources.
