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  1. Don’t worry about ICICI Bank, Fortis-like news; stick to secular investments, says hedge fund manager

Don’t worry about ICICI Bank, Fortis-like news; stick to secular investments, says hedge fund manager

Even as continue to see major developments around ICICI Bank and the Manipal-TGP Fortis Deal, wealth wizard Samir Arora says that he does not view such news as a buying opportunity.

By: | Published: April 12, 2018 4:41 PM
Chanda Kochhar, icici bank ceo chanda kochhar, sebi, videocon group There are allegations of conflict of interest and nepotism involving the bank and Kochhar in extending a loan to the Videocon Group.

Even as continue to see major developments around ICICI Bank and the Manipal-TGP Fortis Deal, wealth wizard Samir Arora says that he does not view such news as a buying opportunity. In an interview to ET Now, Samir Arora of Helios Capital said, “Right now there’s a takeover happening at a hospital and the stock doesn’t move. When I buy a stock, i don’t buy for 5-10%, let it play out, We don’t jump into every news, we like secular stories,”

Explaining his investment strategy, Samir Arora said that when he puts money into a stock he expects to hold it for 3-4 years, which may return 20-30 percent per annum. “I can buy the stock later after a 10% run-up following an event, as long as it has a long runway,” he said.

Notably, ICICI Bank has been in the news after CBI initiated a preliminary investigation against ICICI Bank chief executive Chanda Kochhar’s brother-in law Rajiv Kochhar in connection with the bank’s loan to Videocon. Rajiv Kochhar, CEO of Singapore-based Avista Advisory Group came under the lens after allegations that the company may have benefited from his relationship with the ICICI Bank CEO to get the mandate to restructure foreign currency-denominated debt deals of seven companies, which included Videocon.

Morgan Stanley says that the ICICI Bank stock could remain under pressure as newsflow will drive volatility in the stock. ICICI Bank shares were trading at Rs 287.85, up by more than 1%. On the healthcare side, Manipal-TPG has sweetened the deal to acquire Fortis Healthcare’s hospital business. The latest offer values Fortis’ hospital business at about 21 percent higher to Rs 60.61 billion, according to a statement released by Manipal Hospitals released earlier this week.  

Samir Arora says that private banks will continue to outperform their public counterparts. Sharing his thoughts on the PNB scam, he said that the Nirav Modi, Mehul Choksi perpetrated scam is a major disaster for the system. Further, he said that he has always avoided metal stocks in India, while he owns steel stocks. He expects Titan to be one of the major beneficiaries of formalisation of economy.

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