Money manager and founder of Helios Capital, Samir Arora dismissed concerns over high valuations in the stock market. He said that whether it is India or America, the rise seen in the stock market in the last few years has not yet been so high that investors should worry about the formation of a bubble. He said that at present he is bullish on the equity market as well as gold. Sameer Arora shared his vision for 2025 in a conversation with our colleague CNBC-TV18.
He said, “Unlike the previous bull run, this time we have not had a huge bull run. This time has been very balanced because the supply has been very high. People consider it negative, but the supply has ensured that the overall market is under control. Stay in.”
The veteran investor said that the valuation of the stock market has not been ‘too out of bounds’. He further said that for Indian stocks, the three-year returns of the Nifty 500 have been around 15% per annum. This is in line with our long-term historical average. Sameer Arora said that there is no strategy for correction in the stock market. He did not agree with the view that a sudden correction in the stock market makes the market good for investment again. “It may recover slowly, or go up first, then come down,” he said.
Sameer Arora said, “To say that we should be in a recession next year, or sit holding cash, or wait for the decline, is not right at all and is not necessary either.”
In this market, Sameer Arora remains bullish on financial sectors. At the same time, after June 2024, his stance regarding the IT sector has also become bullish. Apart from this, he is also bullish on food delivery and platform companies, but has maintained distance from EMS companies. Sameer Arora also said that he had sold Titan shares about a year ago.
Sameer Arora said that he is also positive about US equities, where the recent rise is being led by shares of 10-15 big tech companies. All of these stocks are well cashed and beneficiaries of the AI revolution. The valuation (P/E) of these stocks is around 20-30, and they do not look very expensive.
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