Investors Looking To Deploy Cash Now Have One Option, Samir Arora Says
Investors sitting on cash — who think now is the right time to deploy it — can only buy stocks that have corrected, according to Samir Arora of Helios Capital.
The veteran fund manager said buying technology stocks, which have bucked the recent market downtrend, doesn’t make sense right now. Investors who believe the IT sector has good growth potential, he said, should have bought it two months ago when the stocks were underperforming the market.
“That doesn’t mean investors have to buy NBFCs,” he told BloombergQuint in an interview. “But why would you not buy some of the private sector banks which have done well for during past crisis.”
Arora said Indian stock market has always given good returns over a prolonged period. “If this market is very volatile and in the down period if you average once or twice by definition you gains will be magnified from a point-to-point perspective alone.”