Do not rule out a possible 10% downtick in Indian stock market: Samir Arora
In an interview with CNBC-TV18, Samir Arora, Founder and Fund Manager, Helios Capital, said that he continues to remain positive on banks and that he would look to buy HDFC Bank after the recent correction.
Samir Arora, Founder and Fund Manager, Helios Capital, on Thursday said that he wouldn't rule out possibility of a 10 percent downtick in the Indian stock market and advised investors to avoid consumer discretionary space.
"Market can very easily go down. More than 10 percent? I don't know. Because then it depends on stocks and all. Here there is a war and inflation and the market is down 1.5-2 percent and every other market is down 10-20 percent. So many times the market has fallen 6-8 percent without knowing a specific reason. Here there are specific reasons and FIIs are selling or have sold. So I think the fall is a bit less," he said in an interview with CNBC-TV18.
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Arora said that he continues to remain positive on banks and that he would look to buy HDFC Bank after the recent correction. According to him, FII selling is led by active funds rather than ETFs.
"The banks - we have and we like. On the margin, we would buy HDFC Bank because it has fallen enough," he said.
"You were asking whether the selling has been done by ETFs or by active funds? And I think the answer is active funds, simply because the ETFs don’t have HDFC Bank and Kotak Mahindra Bank and all. That itself tells you that the ETF guys are not selling because ETF guys don’t hold these banks," he added.
Foreign institutional investors (FIIs) sold Indian shares worth a net Rs 176.5 crore on Monday, provisional exchange data showed. That marked the lowest FII outflow from Indian shares in more than a month, bringing some relief to Dalal Street investors.
Arora believes that the rate hikes are not already discounted by the market and continues to hold on to some short positions as a hedge.
The market is likely to remain fluid for the next 30-45 days, he said, adding that he expects some impact on global growth owing to Russia-Ukraine war and lockdowns in China.
He believes sanctions imposed on Russia will last for at least 2-3 years. "I can have any bet that the sanctions cannot be lifted for two-three years," he said.
For the full interview, watch the accompanying video
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First Published: Mar 17, 2022 10:31 AM IST
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