Started nibbling on financials; pharma looks good to buy: Jyotivardhan Jaipuria

economictimes.indiatimes.com:

Jyotivardhan Jaipuria, Founder & MD, Valentis Advisors, expects markets to consolidate in a range for the next few months and that will help bring valuations to the fair value zone. Talking about key trigger ponts to take the market higher, Jaipuria says accelerating government spending could benefit the economy. Favorable monsoon conditions have led to a successful crop yield, increasing farmers' income and spending. Additionally, the recent CRR cut by RBI will inject around Rs 1 lakh crore into the financial system, likely boosting earnings in the upcoming March quarter. In this market, he is focusing on financials and pharma stocks.

Markets have been quite volatile for the last three months. We have seen a sharp fall. We have recovered from the lowest that we had seen, but we are still considerably away from the high levels of 2024. Are the valuations reasonable enough for investors to put in their money or is it more consolidation going forward?
Jyotivardhan Jaipuria: When we are looking at the fall over the last three months, what we remember is that the market had a sharper rally this year than for the last three-four years.

So, to that extent, valuations had become quite expensive. They have become a little better than they were with the fall, but even now, I would say they are probably still not what I would call very-very comfortable levels. My view is probably what we get is from here, maybe a bit of price correction, but we also get a time correction, which helps lower the valuations down.