Pankaj Pandey says: “Power as a space is looking quite good for the next five-seven year perspective and our sense is that the government focus will come back once the elections are out. So a lot of triggers are in placer for this sector to keep doing well. NTPC has already achieved a target price post result we will look at reviewing our target prices but NTPC remains top pick.”
Mayuresh Joshi says: “Sun Pharma, Cipla and Lupin probably remain as holds in our global portfolios. From an earnings perspective, Torrent Pharma and JV Chemicals on declines or pullbacks can probably be looked at. Again, the key triggers remain the same across both these stocks.” The comfort stays with largecaps from a valuation perspective as a whole host of mid/small caps have run up quite significantly.
Nithya Balasubramanian says: “At a top-down level, there is a lot more growth than what we are seeing in data. But I believe that the growth drivers will possibly shift into volume growth from pricing growth. The last two years have been pretty good in terms of pricing growth because of the higher inflation as well which was passed along.”
The year 2024, started with a correction in nifty, but one set of stocks which were able to outperform were pharma stocks. While it might appear to be a sudden up move, if one looks at what has happened in the pharma sector in the last eight years, there is a good chance that right from valuation readjustments to changing business model might play a role bringing the large pharma companies back into limelight. Infact some of these stocks have quietly inched upward in the last few months. It might be too early to call, but if a re-rating plays out in this space, it might surprise many in terms of price movement.
While the markets have started to consolidate, traditionally defensive pockets like FMCG, Pharma, etc., have started to show improving relative strength and performance.