He highlighted the industry’s obsession with short-term market expectations. “They are over-catering to the market,” he said, criticising companies for deferring salary hikes to protect quarterly margins.
He also questioned the sustainability of the sector’s growth profile. “We don’t like 3–4% kind of growth. Who cares for that?” he said, adding that valuations need to reflect the lower growth outlook.Also Read | The dollar may be done falling, no matter what Trump says: Ed Yardeni
Arora, however, remains broadly positive on India’s equity market. He pointed out that global investor interest is slowly shifting away from the US. Helios’ global fund has reduced its US exposure from 70% to 50% and Arora believes India stands to benefit from this shift.
Annual returns are likely to remain around 10–12% given current flows and macro support. Helios Capital continues to maintain a large allocation to financials and consumer discretionary stocks and expects banks to recover in the coming quarters.Also Read | PVR faces 2-3% profit hit if Karnataka enforces ₹200 movie ticket cap: Elara Capital
On the insurance side, Arora said Helios holds HDFC Life, ICICI Lombard, and Niva Bupa. He believes the sector has long-term promise, and that “sometimes just buying the obvious candidate is enough.”
The firm is also invested in Bajaj Finance, with Arora saying that inflows into their funds naturally lead to adding more of their existing high-conviction stocks.
Helios has also added a 5% allocation to gold in its global fund, citing long-term concerns over US debt and the dollar’s status.
For the full interview, watch the accompanying video
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