The era of IT services and banks leading the growth story in the Indian stock market seems to be over, according to Jefferies’ global head of equity strategy Christopher Wood. He believes that the Indian stock market is entering a new phase where its growth story is no longer defined by its traditional pillars of IT services and banks.
“That era is over,” Wood, the author of the widely followed Greed & Fear report, told Business Today TV in an interview, stressing that the bigger challenge for investors now is deciding “what not to own.”
While IT services firms continue to make conceptual sense for long-term portfolios, Wood flagged key risks weighing on the sector. “For some Asian countries, 50% tariffs would be a total disaster,” he told he news channel, adding that global software also faces structural disruption from artificial intelligence.
Wood, who manages a concentrated 20–25 stock portfolio, has traditionally maintained a core allocation to Indian banks. However, he said in the interview that his focus this year has shifted towards financial companies that are better positioned to benefit from lower interest rates and rising consumption.
India Investment Themes
The veteran strategist pointed to a range of emerging investment themes shaping India’s next growth phase. He highlighted infrastructure as a key area, particularly airports and cement. Cement, he noted, is becoming increasingly attractive thanks to industry consolidation that has improved pricing power and competitive dynamics.
Another promising theme, according to Wood, is travel and tourism. He said both outbound and inbound demand remain strong, making the sector a long-term beneficiary of rising disposable incomes and India’s expanding middle class.
On the healthcare front, Wood underlined the long-term potential of hospitals, which are seeing steady demand growth. However, he clarified that despite the strong fundamentals, he has not included them in his tightly concentrated 20–25 stock portfolio, the Business Today report said.
Wood also sees significant opportunities in defence, a sector he expects to draw greater focus as India accelerates efforts to build domestic manufacturing capabilities. He believes defence will continue to expand in importance, supported by government policy and rising strategic requirements.
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