Use correction in financials to buy for the long term: CLSA's Chris Wood

Analysts see no respite for NBFCs at the bourses in the near-term

The recent sharp correction in the stock prices of financial stocks should be used as an opportunity to buy for the long term, says Christopher Wood, managing director and equity strategist at CLSA in his weekly note to investors, GREED & fear.

“There have been some fun and games in India’s financial stocks over the past week partly driven by Reserve Bank of India (RBI) announcements, and partly driven by the market discounting higher wholesale funding costs for non-bank financial companies. This setback should be viewed as a long-term buying opportunity. Still portfolios with such exposures need to hedge the