Not buying IT stocks, says Samir Arora; market veteran is bullish on these sectors
Seasoned investor Samir Arora continues to refrain from IT stocks. The founder of Singapore based Helios Capital is not buying IT stock.
- Aug 8, 2023,
- Updated Aug 8, 2023 2:15 PM IST
Seasoned investor Samir Arora continues to refrain from IT stocks. The founder of Singapore-based Helios Captial is not buying IT stocks. He has put his portfolio allocation more inclined towards financials and consumer pack. India outperformed the majority of the global markets in the past in dollar terms. Arora remains positive on India in the coming years. Arora said that he has been able to outperform the benchmark index because his portfolio has higher weightage in the consumer and financial space. He said that his weightage in the IT sector is zero. He said that 70 per cent of his allocation is towards the long side. IT stocks have been laggards in the last two years. The Nifty IT index, which has more than doubled in the last five years, has posted double digit gains in the three months but remains flat on a year-to-date (YTD) basis. Arora, explaining his thesis to hunt alpha at an early stage, said that he picks relatively new companies, which have no negative in terms of valuations, balance sheet, capital allocation, business model or company management. He said that these companies may belong to some of the underperforming segments or sectors. Arora said that global investors have remained buoyant in India, while domestic funds are also pouring in money at Dalal Street. He added that 'China plus one' is the biggest story for India and the world is realizing it. Global leaders are entering India both ways - portfolio investments and direct investments. Another renowned equity investor Vijay Kedia also suggested investors to avoid the information technology (IT) sector due to the ongoing slowdown in the US coupled with the emergence of artificial intelligence (AI). Kedia, who holds over 1 per cent stake in more than 15 listed firms, thinks BSE Sensex could touch the 70,000-mark by the end of the current calendar year.
Also read: Hot stocks on August 8, 2023: IRFC, RateGain Travel, Graphite India, Paytm, Inox Wind and more
Also read: Adani Ports Q1 results preview: Sales likely to grow 15-20%, profit may jump sharply
Seasoned investor Samir Arora continues to refrain from IT stocks. The founder of Singapore-based Helios Captial is not buying IT stocks. He has put his portfolio allocation more inclined towards financials and consumer pack. India outperformed the majority of the global markets in the past in dollar terms. Arora remains positive on India in the coming years. Arora said that he has been able to outperform the benchmark index because his portfolio has higher weightage in the consumer and financial space. He said that his weightage in the IT sector is zero. He said that 70 per cent of his allocation is towards the long side. IT stocks have been laggards in the last two years. The Nifty IT index, which has more than doubled in the last five years, has posted double digit gains in the three months but remains flat on a year-to-date (YTD) basis. Arora, explaining his thesis to hunt alpha at an early stage, said that he picks relatively new companies, which have no negative in terms of valuations, balance sheet, capital allocation, business model or company management. He said that these companies may belong to some of the underperforming segments or sectors. Arora said that global investors have remained buoyant in India, while domestic funds are also pouring in money at Dalal Street. He added that 'China plus one' is the biggest story for India and the world is realizing it. Global leaders are entering India both ways - portfolio investments and direct investments. Another renowned equity investor Vijay Kedia also suggested investors to avoid the information technology (IT) sector due to the ongoing slowdown in the US coupled with the emergence of artificial intelligence (AI). Kedia, who holds over 1 per cent stake in more than 15 listed firms, thinks BSE Sensex could touch the 70,000-mark by the end of the current calendar year.
Also read: Hot stocks on August 8, 2023: IRFC, RateGain Travel, Graphite India, Paytm, Inox Wind and more
Also read: Adani Ports Q1 results preview: Sales likely to grow 15-20%, profit may jump sharply