At current valuations, pharma stocks are not cheap but if they correct then they become attractive despite near-term headwinds, said IV Subramaniam, of Quantum AMC.
With stocks prices correcting, Quantum AMC has started deploying its cash levels in the portfolios of the schemes it runs, says IV Subramaniam, MD & CIO, Quantum Advisors and Director, Quantum AMC.
In an interview with CNBC-TV18, Subramaniam said that with stocks correcting post earnings, many there were looking expensive earlier are now looking attractive.
He also exhorted investors to look past day-to-day noise: case in point, IT stocks have taken a hit after Cognizant's results but Subramaniam pointed that companies outlook for the year remains strong.
"Overall there is good opportunity from a long-term potential and therefore if stocks prices correct and valuations look attractive, we would look to buy more," he said.
Subramaniam remains cautious about pharma stocks given the challenges they face but said that he would look at them if valuations were to correct further.
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