Greek referendum hasn't created a panic-like situation: Samir Arora

Q&A with founder and fund manager, Helios Capital

Indian markets recovered most of their losses after a knee-jerk reaction to the developments in Greece, which saw the country reject the bailout proposals from its creditors. Samir Arora, founder and fund manager, Helios Capital (Follow Samir Arora on @Iamsamirarora) tells Puneet Wadhwa that he remains bullish on India and would buy on dips. Edited excerpts:

What is your interpretation of the developments in Greece? Can this trigger a risk aversion phase across global equity markets and how insulated is India amid all this?

The market reaction, except in Hong Kong, post the Greece's referendum looks very limited. Weakness in Hong Kong is related to that in China and the reaction there is due to disappointment in government's ability to turn around sentiment in Chinese equity market.

The Euro, however, has dipped marginally. Currency is a more liquid market and reacts faster when dealing with such issues as compared to stock markets. The current currency movement does not indicate that this is a panic-like situation.

If there is a panic going ahead, then everyone, including India will get impacted. But hopefully, all this will be defined by one's proximity to the euro-zone and the problems with Greece. India does not have a direct relation, except for the fact that we are a part of the global financial system.

What explains the sharp cut in the Asian markets and a somewhat muted response from the Indian benchmarks on Monday?

For Hong Kong, as I said earlier, it is to do with China despite the policy measures announced by the Chinese government. Most investors feel that the even policy measures won't work and that's why the markets have seen a correction.

What is your outlook for the Indian markets from 6 - 12 month perspective? Would you buy into dips?

I remain bullish on the Indian markets and till now the strategy has worked well for us. I would use a correction to buy. However, I would not call the intra-day fall seen on Monday as a 'dip.' We have the results season coming up and then there is the outlook for the monsoon. In the next 15 - 20 days, we'll get more clarity on the financial performance for India Inc and the level / progress of monsoon.

At a global level, there will be more clarity on the road ahead for Greece. Overall, things do not seem bad at all; even oil prices are down. There have been reports that the stalled projects have started moving. The Reserve Bank of India (RBI) governor has also hinted at the possibility of a rate cut in case the monsoons progress well.

Are there any sectors that make it to your investment list at the current levels?

We can be selective while investing even if the corporate results are bad. We like private sector banks, non-banking finance companies (NBFCs), companies in the consumer, media, auto ancillaries and agri-input sectors.