MUMBAI– U.S. brokerage Jefferies is advising clients to buy, not sell, Indian stocks, predicting that President Donald Trump will eventually walk back his high-tariff policies, which it says are unsustainable and not in America’s interest.
In a report released Monday, Jefferies strategist Christopher Wood argued that Trump’s aggressive trade measures are likely to soften under pressure from both global markets and domestic concerns.
“It is only a matter of time before Trump backs off the stance, which is not in America’s interest,” Wood wrote. “On this point, it is worth noting that the track record makes it clear that it pays to stand up to the Donald.”
Wood warned that Trump’s actions against major economies risk accelerating a push by BRICS nations — Brazil, Russia, India, China, and South Africa — toward de-dollarization, where cross-border transactions bypass the U.S. dollar.
Despite recent volatility, Jefferies has kept a bullish outlook on India. The firm maintains a “marginal Overweight” position on Indian equities in its Asia ex-Japan relative-return portfolio and continues to hold India as a key part of its long-only portfolio.
“India represents the best long-term structural story in Asia,” Wood said, while acknowledging that the market faces “high valuations and massive equity supply.”
Indian stocks are currently trading at 20.2 times one-year forward earnings, down from a peak of 22.4 times in October 2021. The report noted that over the past 12 months, India has seen its steepest stretch of underperformance compared to global emerging markets in 15 years.
Wood also pointed to fractures in U.S. foreign policy, arguing that the lack of a coherent framework is driving BRICS nations to coordinate more closely.
Meanwhile, U.S.-India trade tensions remain unsettled. Washington has already imposed a 25 percent tariff on Indian exports, with an additional 25 percent duty scheduled to take effect August 27. Media reports indicated that a visit by U.S. trade representatives to New Delhi, initially slated for August 25–29, is expected to be rescheduled. (Source: IANS)
