Moneycontrol
Jul 14, 2017 01:33 PM IST | Source: CNBC-TV18

Correction in global markets soon; India better placed on good macros: Baring PE

Rahul Bhasin said that pharma has considerable value, though short term there could be disruption.

Sounding a caution on the global markets, Rahul Bhasin, Managing Partner at Baring Private Equity sees a real possibility of correction in these markets soon.

In that context, where do Indian markets stand? Bhasin told CNBC-TV18 that the Indian market at an aggregate level is better placed as the macro economic scenario is better. He explained that in terms of per capita income, we are crossing USD 1800 and historically, nations which have reached at this point have seen significant growth points from here.

Speaking on sectors, Bhasin believes that IT sector could face a challenge in sustaining its market capitalisation. Having said that, he mentioned how employment data in the US could show varying trends. For instance, the largest employer is retail and restaurants in the US. A close look at the data reveals that profitability of these sectors has declined. It includes part time employment data as well.

On sectors, Bhasin said that pharma has considerable value, though short term there could be disruption. He placed bets on large pharma stocks. Meanwhile, on IT, he sees unit size of orders coming down and that time people spend on the bench will increase.
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