The Indian market continued its corrective trend, as benchmark indices fell in the opening tick, and dragged the Nifty below 10,000-mark.
“Valuations are still on the higher side…certain pockets are still overvalued,” Sanjeev Prasad, Senior Executive Director & Co-Head, Kotak Institutional Equities told CNBC-TV18 in an interview.
IT and pharmaceuticals space are not seeing outlandish valuations, but challenges on growth remain. “The sectors are nearing the bottom with respect to valuations,” he said.
On pharma, which was under pressure due to weakness in Biocon, he said he has been very light on the sector for the past three years.Meanwhile, on oil marketing companies, he prefers Indian Oil (IOC) as it is cheaper at current valuations. He further added that the company has more resilience as compared to HPCL and BPCL.