Edelweiss Securities positive on pharma space

Vikas Khemani, Edelweiss Securities is positive on pharma space.

Khemani told CNBC-TV18, "From saving perspective I like IT sector because a) the business momentum is fairly strong. Secondly it is a natural hedge against the rupee depreciation hence I think despite notes of cheap valuation or slightly high valuation; I think IT sector will continue to do well." He further added, "Oil and gas sector again holds reasonably good promise given the fact that oil prices are high and petrochemical cycle and the refining margins cycle is doing well. So that sector looks pretty interesting to me. Pharmaceutical sector also we are fairly positive given the fact that especially I like the domestic formulation story where it is more of a penetration and the growth story." "In terms of auto there are a lot of headwinds because interest rates are looking up, commodity prices are looking up, oil prices are looking up, so all the three macro headwinds are there for the auto sector, which in my opinion should create an overhang on the auto sector. Real estate sector I do not like. Banking and financials I think you will see again a lot of macro headwinds, margins coming under pressure over the next 3-4 quarters, so hence downward earnings revision possible." "I think from a defensive perspective add utility into your portfolio because not very expensive and in an uncertain market good downside protection these stock provide. Once can look to add some portfolio there. Where the consumers are concerned you will see some amount of pressures on the margins, so probably you can look at stock specific and neutral weight kind of a situation there."