Should you be bullish on pharma sector in near term? Sudip Bandyopadhyay answers

economictimes.indiatimes.com:

«It is just that we have a strong domestic investor sentiment and about $2 billion per month is the incremental SIP which I think to an extent is ensuring that markets are not really crashing,» says Sudip Bandyopadhyay, Inditrade Capital.

Just wanted to understand from you that from the earnings, which sector that you are looking out for because for the upcoming week, we will be having major banks as well as pharma majors will be reporting their numbers like Dr Reddy’s as well as Cipla and I wanted your take specifically on pharma because that particular index did show some resilience in the week gone by and last quarter itself we actually sort of see a bit of a re-rating for these names because the US markets were supportive. There were positive cues coming in as well as the domestic market did flare well. So, this time as well, are you expecting a similar kind of a result announcement from these pharma majors and will you be a buyer of pharma at this point in time?
Well, I think we have to understand that we are in the midst of a global turmoil. As Rajesh also mentioned, that geopolitical stress and tension is creating risk aversion worldwide. On top of it to an extent because of geopolitical stress, the oil prices have moved up, which is definitely not good for Indian capital markets and we have US yields which are at record highs.

Unlock Leadership Excellence with a Range of CXO Courses

Again, this does not augur well for Indian capital markets. So, under these circumstances, we have been seeing a lot of selling pressure