Healthcare, pharma sectors to do well in near future, says Abhishek Tiwari of PGIM India

livemint.com:

bull run is likely to continue for a long time to come since the structural growth of the Indian economy will continue, believes Abhishek Tiwari, executive director and Chief Business Officer of PGIM India Mutual Fund. In a telephonic interview with MintGenie, he also sheds light on the scope of growth that some good quality small and mid-cap stocks can offer. Mr Tiwari also says healthcare and pharma are likely to do well in the immediate future, while financial services – as a sector – is a ‘good buy’ for the medium to long term.

While sharing some pearls of wisdom with retail investors, he cautions them against their returns chasing behaviour which needs to be checked. The structural growth of India will continue for time to come. Corporate balance sheets are getting stronger.

So, the bull run will stay but there could be blips along the way. If the outcome is the same as expected, it will be celebrated. However, the seeds of structural growth have already been sowed in terms of reforms and spending.

These all are the long-term drivers of the economy irrespective of what is going to happen. From the valuation standpoint, large caps should be the best space to invest. But there is still humongous scope in the good quality and well-run mid and small cap companies.

However, the inclination should be towards large caps. Healthcare and pharma are the sectors that are likely to do well in the immediate future. Within these areas, hospitals and diagnostics look strong because of several reasons including medical tourism.

From the medium to long term perspective, specialty chemicals and financial services look promising. Financial services sector includes good AMCs, RTAs, depository companies and insurance. At the baseline,