India Banks Lose Their Growth Edge? Jefferies' Chris Wood On Financials

India’s banks may not return to the kind of secular growth seen over the past two decades, according to Christopher Wood, Global Head of Equity Strategy, Jefferies. In an exclusive conversation with Business Today TV, Wood says traditional large-cap sectors have become less exciting, while NBFCs have been performing better than banks. He says higher interest rates could create a near-term headwind for financials, even as private capital expenditure shows signs of improving. Wood does not view financials as a negative sector, but says the growth profile has changed. He also flags the expanding AI theme as a risk for India’s IT services sector. The comments come as investors track whether financials can regain momentum and whether India’s traditional large-cap sectors can deliver stronger growth.