Invest in pharma space: Khade

Shashank Khade, VP-Portfolio Management Services at Kotak Securities is of the view that one can invest in pharma space.

Khade told CNBC-TV18, "Capital goods is one sector where on the infrastructure space if one were to look at, at least you are driven by earnings and the earnings are visible to a large extent. Leave alone the factor of the dampening profitability because of input cost. But having seen that and having factored into the valuations, I think capital goods still remains an interesting space to watch out. My sense is from where we were about eight months back to now we have seen huge change in valuations. There has been a reason for that change in valuation as well; there has been a perspective change in the growth itself. But I think we have factored in a lot of negatives in the capital goods space and that could be a space, which one needs to look at for a bounce going forward."

He further added, "I still believe pharma could be a good sector to look at especially if you get a sense that oil is not going to come off for some more time. So pharma looks by and large resilient as a sector to invest in. I would still go ahead and selectively start investing in Banking and certain Non-Banking Financial banking companies (NBFC) as well because we had a thrashing for these companies and they could get interesting plays as the concerns, which are today donning these stocks start easing away. So that could be still an interesting but contrarian sort of a bet to invest in. But I think the risk reward has become favorable for a long-term investor and it’s a frame of mind, which one needs to look at that given the fact next three-six months are still going to be uncertain are you going to take care of this volatility in your stride. If the answer is yes then it is time to start investing aggressively in equities."

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