New Delhi. In recent months, the Indian stock market has gradually stabilized itself and investor confidence is returning in many sectors. Meanwhile, Helios Capital founder and well-known investor Samir Arora says that the market has already taken a turn and this is a positive sign for investors. He said that even though investors are seeing ups and downs now, India’s performance has actually been better than most of the major markets in the world. MSCI India gained 5.5% in the last two months, while China fell 6%, emerging markets were up 1.8% and US markets rose less than 2.5%.
According to Arora, the reason for the slight hesitation seen among investors is that smallcap shares have not yet reached their old highs. He said, “Our midcap fund was launched in March and is now up 30%, while the midcap index is up 20%. There has been a rally, it is just not visible when compared to the high of 2024.”
Impact of reforms and domestic demand
Arora believes that recent government reforms have helped in improving the market situation. Reduction in GST rates, rate cuts by RBI, income-tax relief and changes in tariffs have had a positive impact on the pockets of common people. He said that these changes will not be directly reflected in the profits of any company, but will strengthen the budget of every household and gradually its effect will be visible on the market as well. Arora says that when the selling pressure of foreign investors (FIIs) reduces and domestic demand starts flowing properly, the market share will increase further.
Cautious stance in broker and exchange shares
Arora is still cautious about capital-market related shares, especially broker and exchange shares. He told that BSE and MCX showed growth in 2024, but speculative trading has increased a lot, which is not sustainable. He believes that these stocks need some stability and balance first, after that gradual growth can be seen.
Better opportunities in the long run
According to Sameer Arora, the most promising sectors for the long run are asset-management and large financial stocks. These businesses benefit from the participation of common investors and can perform well in the long term. He also said that as the pressure from foreign investors reduces, midcap and smallcap stocks may see further growth.
prospects for the coming months
Arora believes that the market may go down slightly in the next 1–2 months, which he considers as “bottom”. After this an increase of 7–8% is possible. He stressed that investors should not expect any sudden surge, but should focus on the impact of gradual recovery.
