FIIs selling due to 'pathetic' earnings, not US or China reallocation, says Samir Arora of Helios

Samir Arora

FIIs selling Indian stocks are doing so primarily due to ‘pathetic’ corporate earnings, rather than reallocating funds to the US or China, Helios Capital founder Samir Arora told Moneycontrol on the sidelines of the CNBC-TV18 Global Leadership Summit held in Mumbai.

He added that the common narrative assumes investors may avoid China due to President Donald Trump's stance, but that may not necessarily be the case. "Global investors may have minimal exposure to India, often around just 1 percent, compared to about 60 percent in US markets. It's unlikely they'd reduce their already small stake in India to increase their US holdings further,” he said.

During a panel discussion in the same event, he also said that the weak earnings might not change in the next three months. Rather, it would take another six-to-nine months for the earnings to come back.

Regarding the newly elected US president's impact, Arora emphasized that Indian markets have no reason to turn negative. "While we may underperform compared to US markets, there’s no need for pessimism," he added.

When discussing future strategies, he advised focusing not on companies serving end-market players, but rather on those directly delivering products to the end customer. Examples of these are food delivery companies, quick commerce platforms, or companies selling digital insurance.

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