India's startup IPO rush has a lot of hype, says Chris Wood, but they remain long-term investments.

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Chris Wood on ET Now 

Key Highlights

  • India internet companies will do well but are expensive, will not chase them
  • India portfolio is long term portfolio with growth stocks
  • Not worried about EV in autos in India as yet

Mumbai: The startup rush on IPO Street has a lot of hype, and while they remain long-term investments, Chris Wood says he is not too keen to chase them right now. The Global Head of Equity Strategy at Jefferies told your channel today, that the listing pipeline of new-age companies is a very encouraging sight.

When asked if the startup bets in China offer better value compared to India, he said the recent clampdown has made the valuations of big Chinese unicorns very attractive. The Chinese government has been making sustained efforts to bring Chinese startups under greater regulation. Chris Wood said these companies were getting ‘monopolistic and becoming a threat to small businesses’.

These regulations were more like the ones in place in Western economies, but now getting extended to the Chinese startup culture. Another big factor at play is the CCP’s desire to ‘control the data’, that these companies are generating, said Chris Wood.

However, he does hint that Indian internet plays may at some point of time in the future find their way into the model portfolio. Wood has recently launched an India long-only equity portfolio of 16 stocks, which have blue-chip like HDFC, ICICI Bank, SBI, RIL, Bajaj Finance and Maruti. One important distinction for Wood has been the fact that Indian startups have been competing with big US players, while that is not the case in China.

On EVs, he is a bit more circumspect. Chris Wood is not having sleepless nights over electronic vehicles taking over the roads anytime soon. He said that ‘may be the case in the West, but in India, it is a bit premature’.