Are the recently listed new age business IPOs a bargain after the recent fall? No, according to Helios Capital’s Samir Arora. With the US Federal Reserve set to hike interest rates at a fast clip, blue chips are a much better bet, he says.

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"There is no need to try these new things right now because the new is what is being attacked because the new had a lot of expectations and a lot of money coming in. I think that is getting clogged in the US and it is just a matter of a few months before it will happen in India where somebody will not get new funding and will have to do a down round, I don't think anybody is buying any of these new-age IPOs for the next week, six months," he said.

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Arora believes that 2022 will be a tough year to make windfall gains.

“In India in the short term, this LIC overhang is there, it is too big an amount for one two month window. Plus, I think that the new IPOs have gone for a six so if that stops the stress in the private market, where many of the companies may have been waiting for further funding or IPO exits, that is going to clog all those guys,” he explained.

What is Samir Arora betting on? “Our top three holdings are banks which is ICICI Bank number one, State Bank of India number two and HDFC Bank number three,” he said explaining that the financial sector is doing well and poised to go higher.

For the full interview, watch the accompanying video

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(Edited by : Abhishek Jha)

First Published:Feb 7, 2022 11:50 AM IST