Jefferies remains bullish on Indian equities amid robust fundamentals

New Delhi: Jefferies’ Christopher Wood has reiterated a positive outlook on India, citing strengthening domestic fundamentals, improving credit growth and the return of foreign portfolio investors (FPIs), while making changes to his India-focused equity portfolio.

In his latest GREED & Fear note, Jeffferies’ Global Head of Equity Strategy said foreign investors turned net buyers of Indian equities in July, investing $2.45 billion as global investors unwound positions linked to the technology-driven memory trade.

He said India continues to stand out among emerging markets on the back of improving macroeconomic indicators, with bank credit growth accelerating to 17-18 per cent year-on-year during 2026 which is the fastest pace in more than a decade.

According to the note, corporate lending has emerged as the strongest driver of credit expansion, growing around 20 per cent year-on-year, while loans to the agriculture and retail segments rose 17 per cent and 16 per cent, respectively. Demand for automobiles and residential property also remained healthy, it added.

Reflecting his positive stance on the Indian market, Wood reshuffled the India long-only portfolio by replacing many domestic firms’ stocks. Wood also highlighted measures that could support the rupee in the coming months.