Christopher Wood, global head of equity strategy at Jefferies, told CNBC TV-18 in an exclusive interview that India looks set to record the best earnings growth in Asia. Much like 2003 and 2007 it could be one of the best-performing markets.

In a recently released report, Jefferies' Chris Wood projected India's benchmark BSE Sensex to hit 100,000 on a five-year view i.e., by late 2026.

The Sensex is soaring above 57,000 points meaning, it could rise as much as 70 percent in the next five years, ie an annual growth rate of 11 percent.

"It is entirely logical for India to see market correction as the country is expensive in the emerging market context, but what's very encouraging so far in India is significant foreign selling of Indian equities...and the market is supporting remarkably well by continuing domestic flows in India,'' said Chris Wood.

On Indian markets, he said, “There are two external risks facing the Indian stock market this year, primarily in my view, the one is obviously the Fed tightening and the other is the oil price.”

''Oil prices are getting still higher and the key thing driving the oil is the demand coming back after the pandemic, combined with extreme supply shortages, and these shortages reflect the political attack on fossil fuel in recent years,'' added Wood.

Wood attributes higher foreign exchange reserves as a reason for stability in India. Current foreign reserves stand at $634 billion, equivalent to 13 months of imports. This accelerating growth dynamic means that the current account deficit is rising rapidly as non-oil and non-gold imports have been growing rapidly.