Samir Arora-led Helios Flexi Cap Fund has undertaken a notable portfolio reshuffle in March 2026, increasing its exposure to domestic cyclicals while exiting PSU oil marketing companies, according to its latest monthly disclosure available via official portfolio filing. The move comes at a time when global energy volatility and domestic earnings dispersion are shaping institutional allocation strategies.

As of March 31, 2026, the fund manages assets worth approximately ₹5,746 crore and remains largely deployed, with a modest cash holding of 1.42%. The portfolio continues to be anchored in large-cap names, with HDFC Bank, Reliance Industries and ICICI Bank forming the top three holdings. Other key exposures include Adani Ports and Special Economic Zone, State Bank of India and Eternal, reflecting a bias toward established market leaders.

A key highlight of the month was the complete exit from Indian Oil Corporation and Hindustan Petroleum Corporation. This decision aligns with the broader pressure seen in oil marketing companies (OMCs), which have been impacted by the ongoing West Asia geopolitical tensions. These developments have led to volatility in crude prices, compression in marketing margins and potential forex-related losses.

The sharp correction in OMC stocks during March IOC declining nearly 24% and HPCL around 26% suggests that institutional investors are increasingly wary of near-term earnings visibility in the sector. Broker commentary pointing to sequential weakness appears to have influenced allocation decisions.

From a broader perspective, this exit reflects a shift away from commodity-linked earnings streams towards more predictable domestic growth drivers.

The fund initiated fresh positions in four stocks during the month, indicating selective bottom-up opportunities.

Solar Industries India emerged as a key new addition, with a 1.06% allocation. The investment comes amid increasing investor interest in defence-linked manufacturing companies, particularly those operating in high-entry barrier segments such as propellants, ammunition systems and unmanned platforms. Despite a near 13.8% decline in March, brokerage outlook remains constructive, citing strong multi-year growth visibility.

Similarly, the fund added exposure to BSE, allocating close to 1% of AUM. The capital markets theme continues to attract institutional flows, supported by sustained retail participation and structural growth in financialization of savings.

Other additions include GMR Airports and Sedemac Mechatronics, though at relatively smaller weights. The inclusion of an airport infrastructure player suggests a continued belief in long-term aviation growth, while participation in Sedemac post-listing highlights interest in niche manufacturing and auto-component plays.

Beyond new additions, the fund significantly increased exposure to existing holdings, particularly in the financial and cyclical segments.

HDFC Bank saw a sharp increase in holdings, rising nearly 40% month-on-month. This comes despite the stock correcting around 16% amid governance concerns linked to AT1 bond mis-selling and management changes. The increased allocation suggests a contrarian approach, betting on long-term franchise strength over near-term noise.

State Bank of India also saw incremental buying, reinforcing the fund’s overweight stance on the banking sector. Collectively, banks now form the largest sectoral allocation at 15.6%, followed by finance and capital markets.

In cyclicals, the fund added to NTPC and Tata Motors, indicating confidence in power demand visibility and the auto recovery cycle. Additional exposure to Bharti Airtel, Reliance Industries and Adani Ports further underscores a preference for scalable, sector-leading businesses.

The fund’s portfolio expanded to 64 stocks in March from 62 in February, suggesting incremental diversification. Sectorally, apart from financials, exposure remains balanced across retailing, petroleum products, transport, automobiles, construction, power, healthcare and telecom.

Notably, despite exiting OMCs, petroleum products still account for over 5% of the portfolio, indicating selective rather than blanket sector avoidance.

In a recent interaction, Samir Arora indicated a constructive outlook on markets, highlighting easing competitive intensity and moderation in IPO valuations. His comments suggest that the fund house sees a more rational pricing environment emerging, which could support disciplined capital allocation.

This aligns with the fund’s current positioning favoring quality large caps and selectively adding cyclicals during periods of correction.