Samir Arora, founder and fund manager, Helios Capital is of the view that with exit poll results it looks like the main event is already out of the way because maybe on May 23 we cannot do better than this in terms of news or National Democratic Alliance (NDA) seats and so, we will move back to the regular market related issues, which are not all that positive right now.
However, it is not clear whether an old government or new government can change some of these things. So, it is not a runaway market to celebrate the same news for many more days, he said in an interview with CNBC-TV18.
According to him, market is also unlikely to repeat the performance of a 30 percent returns that it did during the first year of the first term of the NDA.
He is also of the view that just because a committee has been set up by the government to solve a certain issue, it does not mean that issue will be solved, it may take its own time to resolve.
Talking about slowdown in the consumption space, he said it is negative in a sense but in a big picture the only real themes in India are financials, consumption and bit of IT and pharma and so would prefer to remain in these themes on a brad basis. “We cannot walk away from the consumer theme because that is one of the logical themes in India due to demographic, urbanisation, because of people moving up from lower middle class to middle class, under penetration etc., the companies generally are good, so will not easily give up on this theme,” he added.
With regards to financials, he said they would prefer to buy stocks where results are already out and they are good, instead of trying to bet on turnarounds. So, the house has bought SBI and would not add or bet on any NBFCs, he said, adding that only Bajaj Finance remains their favourite.
Talking about the IT space, he said there is less value-addition in terms of choosing which stock but broadly for the sector we feel there should be some weightage. “Generally when we look at big picture, we see Indian companies have done well.
Looking at our alternatives in India, which are to do with infrastructure, capital goods etc., are not worth analysing except L&T, We are okay with having around 15 percent in IT,” he said, adding that they have the regular stocks, one largecap and three midcaps.
With regards to aviation space, he said they don’t have any long or shorts in the sector.
“We have a global fund in which there are from all over the world 58 stocks, only two stocks from India and the number one holding worldwide we still have HDFC Bank in that fund, second is Google,” he said.
From an FII perspective, he said the interest in the market will be higher and flows from them will remain on the higher side.