The second wave of COVID-19 will change India for some time, said Samir Arora, Founder and Fund Manager of Helios Capital.
“The markets will be higher 12-24 months later, but this (COVID-19) will change India for some time. I think there will be so much disappointment from an Indian point of view that many Indians may want to leave India and foreigners may be scared of India because this is not a normal situation,” he said in an interview.
According to Arora, the pandemic will change many things for the markets and beyond. “From a stock market point of view, it is one more obstacle, but I think this will change many sectors even. Indians will feel like saving more money and not spend it when the unlock happens. To just think of this as a 3-month problem is wrong,” he said.
He believes that consumption has got delayed and consumer durables companies will not see a replay of what it saw during the first wave of COVID.
“Within the three themes that I like always, which is private sector financials, consumer, and the third group of IT, pharma and speciality chemicals, the second group is the most difficult right now to spend new money on or invest new money in,” he said.
He expects private sector financials to eventually come out of the current challenges. He also expects pharma companies to do well because that is where the focus is currently.
However, Arora cautioned that one must not get carried away with the potential waiver on vaccine patents and must focus on immediate measures to address the pandemic.Watch the video for more.