CLSA report shouldn't make investors unnecessarily excited, says Samir Arora

Helios Capital founder Samir Arora

Stock market veteran Samir Arora on November 15 argued that the latest report by global brokerage firm CLSA should not make the investors 'unnecessarily' excited.

The founder of Helios Capital, provided a few reasons to back his claim.

"The CLSA report should not make you unnecessarily excited for - a) it is CLSA and not CIA; b) In my view investors were not selling India to buy China but to buy USA," Arora said in a post on X.

FIIs are mostly done with selling in Indian markets, says Samir Arora of Helios

"Separately, India to USA shift trade would have largely played out with average Indian stock down 10-15 percent and average US stock up 10 percent since September end so any one trying to do this trade now (sell India, buy USA) has already missed 25 percent odd. I think the India to USA trade is also largely over (plus minus a few weeks here or there)."

CLSA report should not make you unnecessarily excited fora) it is CLSA and not CIAb) In my view investors were not selling India to buy China but to buy USASeparately, India to USA shift trade would have largely played out with average Indian stock down 10-15% and average US
Samir Arora (@Iamsamirarora) November 15, 2024

On November 15, in a tactical reversal, CLSA raised India allocation to a 20 percent overweight while cutting exposure to China. The brokerage firm cited India’s stable economic conditions and robust foreign flows waiting on the sidelines to re-enter for the U-turn.

This shift comes amid China’s fresh economic challenges as "Trump 2.0 heralds a trade war escalation just as exports become the largest contributor to China's growth," said CLSA in a note, referring to re-election of US President Donald Trump.