India's Equity Valuations at Risk if Growth Fails to Pick Up: Jefferies Strategist

Equity valuations in India are at risk if growth fails to pick up, according to Jefferies' global equity strategist Chris Wood. India has become the "reverse AI trade" within global emerging markets, and its equity valuations will become increasingly vulnerable in the absence of a cyclical upturn. One area of AI vulnerability remains the IT services sector, with revenue growth slowing down and leading to a de-rating. Wood also warns of the risk of handouts in state election politics affecting the rupee's bottoming out.