Hotels, Aviation, Food Delivery Are Samir Arora's Top Sectoral Picks Amid US Tariffs — Here's Why
Food delivery companies are outperforming benchmarks by 10%. Zomato is Helios Capital's top pick in the space, Arora said.
Hotel and hospitality, aviation, and food delivery are among Helios Capital's preferred sectors amid uncertainty over US tariff policy, according to Founder and Fund Manager Samir Arora.
These sectors fall into the consumer discretionary category, which cater to most tax paying citizens who are willing to spend for amusement in the backdrop of tax cuts and benign monetary conditions in India.
People that the consumer discretionary space caters to can take a loan to buy such items, he said. This is why the sector looks better compared to consumer staples.
Food delivery companies are outperforming benchmarks by 10%. They are helping the indices. These companies do not get affected by US tariffs, Arora said. Zomato Ltd. is the company's top pick in the space.
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Investors may also choose financials, even as the sector did not do well for three years, and their growth was affected because of tight liquidity. Now, interest rate cuts and liquidity injection will support growth of financial companies. Arora hopes for a 25-basis-point rate cut in the ongoing Monetary Policy Committee meeting, which will conclude Wednesday.
Helios Capital deemed IT companies as bad for a while, and they sold the stocks in February, assuming there'll be no good guidance.
Arora suggests investors to observe the next 15-20 days as it'll become clearer who will be the real beneficiary of the ongoing tariff war. However, India will relatively benefit from US tariffs without a doubt because of its little exposure to international trade, according to the fund manager.
