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MSCI capping India’s weightage could be 'mega negative': Samir Arora

Uttaresh Venkateshwaran
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It’s not all over in mid and small caps, watch out for quality names: Experts

Having said that, it is not all over in these segments as quality names will still assure steady returns for an investor, several market voices have said.

Moneycontrol News

The possible effects of MSCI capping India's weightage on its indices could be "mega negative" for the Indian market, Samir Arora of Helios Capital said in an interview to CNBC-TV18.

While it is not sure whether the index provider will carry out this move, it will be a waste of all the effort put towards improving ease of doing business, if it happens.

"You could have blown away USD 10-30 billion worth inflows and the hardwork increases too," Arora told the channel.

Having said that, Arora is also worried about the stance taken by Indian regulators against foreign portfolio investors. He was referring to the closure of the special trading window for FIIs from July 1, 2018.

Also Read: MSCI’s move to put India on notice may impact FII flows, say experts

Speaking on the issue of abrupt resignations by auditors, he pointed to the lack of transparency in informing shareholders about their reasoning.

"In a big picture sense, if the auditor resigns, the regulator must inform the shareholders of the reasons. One does not know that it was a bad stock till such developments take place," Arora said.

The market guru also presented his views on a host of other issues, including politics. He believes that it is too early to plan a trading strategy for the general election, especially with other states' elections scheduled to take place before then.