Focusing more on pharma cos with US exposure: Pawan Parakh

economictimes.indiatimes.com:

Pawan Parakh, Portfolio Manager, Renaissance Investment, says “focussed more on pharma companies with US exposure as of now. Across the board, the data is very loud and clear that there is some sort of shortage in the US. The pricing erosion is no longer there. In fact, some of the companies anecdotally have got clearances for their factories. The cycle, which was not in favour of these companies for the last so many quarters and years, seems to be turning in their favour.
There is this whole debate about whether the small and midcaps are now getting frothy, whether the next lap of the move is going to come in from the largecaps. Do you now need to turn cautious when it comes to the broader end of the market? What's your take?
I completely agree with that argument. In fact, when I was there last time on your channel, I did highlight that. I could see a lot of froth in low-quality midcap, smallcap stocks given the rally that has happened over the last four, five months. And if you take slightly longer periods, say about a year or so, at the index level, while companies have reported decent sets of numbers, at the index level, the Nifty Index has not delivered anything. So very clearly, there is some sort of froth getting built up into midcap, smallcap names. One has to be really cautious about it at this point in time.

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Since you are recommending turning cautious, what is it that you are recommending a bullish bias towards and across market cap categories?
What we have