The markets have been volatile. After a big slip yesterday, where rising COVID concerns lead to the biggest market fall of 2021, the benchmarks are again green today (April 13).
Samir Arora, founder & fund manager of Helios Capital, weighed in on how he reads the near-term trajectory.
Speaking in an interview to CNBC-TV18, he said, “Although we broadly agree that equity markets over time do well and that you should not be out of it, you should not sell easily, but it does not mean that at the first 1 percent correction you start shaking and that it’s the best time to buy. I think the best policy is to relax and do it at your own pace.”
Talking about sectors, Arora said that increase in COVID testing should not be the thesis to buy diagnostic companies. “If you believe that COVID testing is the reason why somebody should buy the diagnostic company or implicitly assuming that COVID will be as serious as it is now for a long time to come and if you believe that then you better not buy any stock instead of just buying a COVID related stock,” he said.
“Currently, both ICICI Bank and HDFC Bank are the same for us and whenever ICICI does little better it becomes our top holding, but broadly we will monitor this as we monitor every other stock, but HDFC Bank because of the history being so good and their ability is there to invest in this and therefore, they will be given a lot more room than a normal stock and we will also give them a lot more room,” said Arora.
For the entire interview, watch the video