Helios Capital founder Samir Arora is bullish on the banking sector, as the prices have become attractive after having fallen sharply.
Samir Arora, founder and manager of Singapore-based hedge fund Helios Capital, is not convinced about a recovery in the auto sector, which has been among the industries hit hard by the coronavirus disruptions. He is also not bullish on the "Unlock" trade on which many market participants are betting on as lockdown restrictions are eased.
"I am very much influenced by what happens in the US and I feel that Indian market, not just because we are copy cats, but because that is how the trends happen and percolate down to emerging markets, and I feel that the auto industry, for example, will be completely disrupted in five-seven years in US," Arora said in an interview to CNBCTV18.
"It may not happen in India for 20 years but then the (auto) stocks don’t move if we can see things having being disrupted in the rest of the world,” he said.
Similarly, he is dismissive of the economic recovery-market linkage.“In the past, we have seen that playing the economic recovery has not worked for many years," he said.
Arora said the widely held view in the market was that share prices will move up as the economy recovers but it is unlikely because past trends are likely to hold.
Arora said that 70 percent of the positions in his fund are long. He said his fund had more than a 20 percent weightage in technology stocks.
Arora said he was bullish on the banking sector, as the prices have become attractive after having fallen sharply.