The market continues to remain robust and broad and every dip has become an opportunity to buy, says Jagdish Malkani, member at BSE and NSE. He says while some of the stocks are overpriced, the investors can go in with the flow.
Despite the recent run up in pharma stocks, this week, problems related to the US FDA made a come back. He believes though the Indian pharmaceuticals industry is a great play, investors should not get carried away.
With the USFDA planning to extend audit at Sun Pharma's Halol facility, there is a lot of talk on whether a price of Rs 806 per share is even justified. Prakash Diwan of Altamount Capital Management believes Rs 800 is not much to ask for a company like Sun Pharma. He says, as a combined entity, the synergies would be much more formidable.
Meanwhile, Tata Motors' latest hatchback in India - Zest - has created quite a buzz for the company. Diwan believes it might be better for Tata Motors (stock) to get out of the passenger cars vehicle segment.
But Malkani doesn't agree with Diwan. He says the company should hold on to the passenger cars vehicle segment as Zest seems like a winner. Malkani further adds there is a lot to be said about diversification. He says the company did reasonably good initially with Indica and Indigo, but lost its way thereafter. However, it rocks as an organization and JLR is a phenomenal story, he adds.
Siddarth Bhamre of Angel Broking too agrees with Malkani that Tata Motors shouldn't exit the passenger vehicles segment. He, however, doesn’t expect Zest to do much for the company.
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