As concerns over a potential US-Iran conflict begin to recede, Indian equities could benefit from easing oil price pressures and improving global sentiment, according to Samir Arora, founder of Helios Capital, who remains constructive on most sectors while continuing to avoid information technology and consumer staples.
Speaking in an exclusive conversation with ET Now, Arora said recent developments in West Asia have reduced one of the biggest risks facing markets.
“All we want is that there be peace and that oil flow easily and prices already showing that,” Arora said, adding that the pressure on crude prices appears to be easing. He expects oil to trade in a lower range than previously feared. “I would think that oil now not 80-90 but maybe 65 to 80 or something. I have no idea but I think that pressure is off,” he said.
On the outlook side, he mentioned that in the next 12 months, Arora said Helios Capital remains bullish on the broader market and sees opportunities across sectors, particularly in mid- and small-cap companies.
“As of now, we are bullish on the market and only one sector we don’t like, which is IT and IT-related,” he said.
Consumer staples face structural challenges
Arora also expressed caution on consumer staples, arguing that traditional business models are facing structural disruption. “Consumer sector grows very less and also has it’s more destroyed in every way from distribution to advertising, everything destroyed by quick commerce and internet advertising,” he said.
AI creates uncertainty for IT services
On the debate around artificial intelligence and its impact on Indian IT services firms, Arora said the sector faces pricing pressure even as new AI-led opportunities emerge. “There is pressure on the old business, and there is growth in the new business. But the new business currently is maybe 8-10-12 per cent, and the old business is 90 per cent,” he said.
He questioned whether AI-driven productivity gains can coexist with strong growth across all technology providers.
“If OpenAI and Anthropic grow a lot, some part is natural new things they are doing, but some part is that they are substituting what somebody else was doing,” Arora said.
Financials offer stability
Despite acknowledging that financials remain a consensus trade, he said the sector continues to provide portfolio stability, especially if foreign investor selling moderates. “It’s not that everybody has it because sometimes everybody has it is also okay because if it is like that, you need somewhat of a backbone in terms of stability,” Arora said.
Defence, data centres and energy among key themes
Beyond near-term market positioning, Arora identified several long-term themes likely to drive growth over the next few years, including alternative energy, data centres, defence manufacturing and infrastructure linked to energy security.
“There have been four or five new sectors separately,” he said, highlighting defence, alternative energy and data centres among emerging opportunities.
Arora said these themes represent structural shifts in the economy and should not be ignored in favour of only traditional large-cap names.
Focus on structural growth opportunities
For investors, Arora’s outlook suggests that while geopolitical risks may be fading, stock selection and exposure to structural growth themes could matter more than broad market direction in the coming years.
With oil prices stabilising, financials providing support and new-economy sectors gaining prominence, Arora remains optimistic on equities, while maintaining a cautious stance on IT services and consumer staples.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
