In his latest weekly note titled ‘Greed & Fear’, Hong Kong-based Wood assigned a 4% weightage to property developer Macrotech. He allotted a 3% weightage to Computer Age.
Shares of Macrotech Developers ended up 9.65% at Rs 989.95 on Friday, while those of Computer Age gained 5% to Rs 2,250.80. Wood’s India long only equity portfolio investments include
, , SBI, , Life Insurance, General Insurance, RIL, , Godrej Properties, , , , L&T, and . Wood has removed investment in and reduced investment in by 3 percentage points to 5%.
Earlier this month, Wood had said in his weekly note that this is a year where investors should accumulate their favourite Indian stocks on weakness in what remains as Asia’s best long-term structural story in terms of equities.
On the US Federal Reserve front, Wood said the most important issue for markets in 2022 remains if and when the central bank adjusts its language, which would in turn be a sign of a change in policy, just as the dropping of the word “transitory” was in late November 2021.
He said that such a development will happen at some point this year, with the timing being dictated as much by market action as by data.
Wood said Chinese equities remain as vulnerable as ever to the contractionary consequences of Covid suppression so long as that policy is maintained with the only positive point being that the consequences are to a significant extent discounted in current valuations. He also remains concerned that China’s continuing Covid suppression policy is risking both – inflicting severe damage to its economy and also a Hong Kong-like loss of control of the variant.