Tuesday, November 8, 2016

Buy pharma stocks: Ambit

Speaking to CNBC-TV18 Pramod Gubbi of Ambit said that the pharma sector will be under pressure. He said pharma has been neglected or has underperformed. Given how things are changing from an investor perspective, they are looking at it as value buy, he said, adding that there won’t be any fundamental changes in terms of the outcome of the US elections. There is a need for Indian companies to move up the value chain and several of them are doing, he said.

Much like pharma, the tech sector is also going through a consolidation after having a good 3-4 years until 2014, he said. There is usually a lag in the advances seen in Indian companies, but they do catch up, he maintained.

It is difficult to gauge the extent of the fall in global markets if Donald Trump wins, he said. There are leveraged positions in the market. Having said that we see that as a buying opportunity, he said. “We don’t see any material changes given the American political and democratic system in terms of checks and balances.”

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