GST rejig proposal saved the day for Indian markets, says Chris Wood

The proposal to recast goods and services tax (GST) regime by September-end saved the Indian stock markets from a sharp correction amid steep 50 per cent tariffs imposed by the United States (US), said Christopher Wood, global head of equity strategy at Jefferies, in his recent note to investors, 'Greed & Fear'.

- PUNEET WADHWA

Wood has removed the investment in Aditya Birla Real Estate in his India long-only equity portfolio and replaced it with an investment in Mahindra & Mahindra (M&M).

"The reason the Indian stock market has not yet reacted more negatively of late to the 50 per cent tariff threat, particularly consumption-related stocks, is the escalating policy response of the government. Income tax cuts were already implemented in the February Budget. But the more positive news of late is a proposed rationalisation and simplification of GST," Wood said.