PE plus earnings growth: Kunj Bansal on where to find opportunities in market

economictimes.indiatimes.com:

Kunj Bansal, Investment-illiteracy.com, says “pharma is one sector which has remained neglected for the last 7, 8 years or so and which is where we seem to have been seeing the interest coming in partly or largely backed by the finally improving financial numbers, both in the US market as well as in the Indian market. I think that is where something similar can continue to remain an investment opportunity.”I guess Zee is where all the action is right now. News just in, the NCLT has approved the Zee merger with Sony India. They have dismissed all objections from creditors. The only overhang I guess now or the other event is that SEBI is yet to pass the final order against Subhash Chandra and Punit Goenka. But does now Zee become a buy for you?I wish I had such simple answers to such simple questions.

Market is God. Market as well as stocks move for two reasons. One in the medium and long term, on the consistent financial performance that a company delivers good or bad and in the short term on news flow, sentiment, demand and supply and all that.

Now, there are some stocks, some managements wherein the news flows and the sentiments and the demand-supply pressures are always more dominant over the financials. It is very difficult to take such calls. These are better taken by studying the technical charts and patterns instead of trying to apply mind on the fundamental side of it.But as a business in terms of insurance which are your top bets?The insurance industry has really gone through a lot, especially in last three-four years in terms of continuous withdrawal of support by government across the various areas, in addition to the government support withdrawal in terms of the help from the distribution commission and the