Samir Arora sees modest returns ahead, no quick RBI rate cut likely

Samir Arora, Founder and Fund Manager at Helios Capital, believes that equity market returns in the near term will likely remain moderate, driven by a few outperforming companies while broader earnings growth stays subdued.He advised investors to temper their return expectations. “Over the next two or three quarters, or at least till the end of the year, you’re only supposed to make another 5-6%, which is 1% per month kind of return. That would be great.”

Arora does not expect a rate cut by the Reserve Bank of India (RBI) immediately.

Among sectors, Arora is cautious on IT and market-linked businesses, citing long-term overvaluation and government intervention. In the financials space, he is avoiding IndusInd Bank due to ongoing legal complexities. He was also critical of overhyped sectors like solar and stock exchange-linked businesses.
However, he is positive on new age businesses like Paytm, Zomato, and Delhivery, where business models benefit from changing consumer habits rather than relying on macro growth. “These things can go on forever because they are early in the game.”Also Read | ‘Quick 10-15% correction would be healthy for the market’: Macquarie’s Sandeep Bhatia

Arora brushed off concerns about US tariff risks, noting that India’s exposure is limited. He highlighted foreign interest in Indian equities despite the rhetoric. Arora sees diversification away from the US as a growing theme, with flows into India returning since February.

Also Read | Axis MF’s Shreyash Devalkar sees broader market consolidation, stock-specific gains driving current cycle.

For the full interview, watch the accompanying video

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