‘US tech stocks not overvalued for Indian investors like me’: Helios Capital’s Samir Arora after US Fed verdict

Helios Capital founder Samir Arora claims that US technology stocks such as Google, Amazon, Nvidia, and others are not deeply overvalued for Indian investors like him. Arora took to the microblogging platform ‘X’ (formerly Twitter) to list the PE of the major US tech stocks. Arora said, “Indian investors like myself would not think these are deeply overvalued.” The list of the US tech giants given by the market expert is as follows:

PE of Google 22

Meta 24

Nvidia 33

Netflix 39

Amazon 37

Microsoft 33.

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Arora responded to a post by Sandip Sabharwal, a SEBI-registered research analyst who claimed that US technology stocks are deeply overvalued and the only major risk to the global equity rally. According to Sabharwal, the US Federal Reserve did not say they would increase interest rates. They only said that they would reduce rates slower than expected earlier.

“That is not necessarily negative, as it will prevent any major commodity spike, which can lead to higher inflation. Markets will find their feet sooner than later,” he said. This comes after Wall Street registered a major crash after the US Fed projected fewer rate cuts in 2025 over somewhat ‘elevated’ inflation.

Also Read: US Fed rate cut fuel running out: What it means for the Indian stock market and your investment strategy

US Fed December policy verdict

The US Federal Reserve announced its eighth and final monetary policy decision for 2024 after a two-day Federal Open Market Committee (FOMC) meeting and slashed its benchmark interest rate by (25 bps) or a quarter of a percentage point to 4.25-4.50 per cent. US Fed chair Jerome Powell-led rate-setting panel cut the federal funds rate for the third straight meeting after kicking off its policy easing cycle in September for the first time in four years.

US Fed now projects just two quarter-percentage-point rate reductions by the end of 2025, down from their September estimate of four rate cuts. “In considering the extent and timing of additional adjustments to the target range, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” said the FOMC in its policy statement.

Also Read: US Fed lowers benchmark rate to 4.25-4.50% for third straight meeting, eyes two cuts in 2025; 5 key highlights