Oil can hit $100; poses biggest risk to Indian equities: CLSA's Chris Wood

Wood says demonetisation damaged India's 'very large but almost impossible to measure informal economy'

Rising oil prices are the biggest risk to the Indian equity story from a five-year horizon, says Christopher Wood, managing director and equity strategist at CLSA in his weekly note to investors, GREED & fear. He expects oil prices to hit $100 per barrel if the United States (US) ends all Iran sanction waivers after May 2 and suggests the best way to hedge this risk is to own oil stocks. However, as a base-case, Wood expects US President Donald Trump to soften his stand.