Samir Arora, fund manager, Helios Capital, says that it is disappointing to see that DIIs are not participating in the rally. He continues to remain bullish on market.
Below is the edited transcript of his interview to CNBC-TV18
Q: The market received inflow of USD 3 billion in January but the market has not moved anywhere and the broader market has corrected a bit. What is your view on this tiredness?
A: The activity in breadth of stocks is disappointing. On a fundamental level, after seeing the global environment, actions of GoI and comments of the finance minister we continue to remain bullish on the market. However, it is disappointing to see that domestic investors are not participating in the rally, beyond a point they will not decide this rally.
Q: At the start of the year the view was that the first three months would be the blockbuster months this year in terms of greatest appreciation of the market in terms of price levels etc, new highs. Is that still on the table?
A: It was a normal expectation based on the fact that people would be excited going up to the Budget. This time the FM has been quite transparent. We are definitely outshining the US and other countries where we normally feel that their politics or economic decision making is better. Now, we can stand on our feet and make an independent story.
In some sense we will be disappointed with the breadth of the market because there are massive sector rotation which is surprising because at one end we say that the money coming into the market is a bit top down and exchange-traded fund (ETF) driven. ETF driven money cannot rotate so fast, it must be a bit more active. In general whether returns comes earlier or later, or in the range of 10 or 15 percent, today one can't be negative on the Indian market from any reasonable angle.
Q: How are you positioned in your portfolio in times like these where large cap names are moving 20 percent in two-three days, cases in point Infosys, ONGC and even Reliance had a good run off late? Do you need to churn your portfolio, are you managing your portfolio more actively?
A: We are not changing our portfolio. However, we don't have these four stocks along with Tata Motors, Exide Industries and HDIL in our basket. I will not buy HPCL or ONGC, but history suggests that if HPCL does well then 15 days later it should also do well because they are in financial sector so this means that RBI will have more room.
We know that if infrastructure or private equity fund makes money then other funds can also make multi-fold money. Despite problems, delay, corruption, land scandals and delay in timeline if someone makes money then we can make more money. So, if someone makes money in HPCL then we can also make money in plus-minus few days or weeks.