Samir Arora, Founder and Fund Manager at Helios Capital is not convinced about a recovery in the auto sector, which has been among the industries hit hard by the disruptions in the wake of the COVID pandemic. He is also not bullish on the 'Unlock' trade, in which many many market participants are betting on an economic recovery because of the easing of the lockdown restrictions.
“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 5-7 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 that thing 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 he sees that as unlikely because past trends are likely to hold.
Arora said that 70 percent of the positions in his fund are long positions. 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.