Glenmark, Dr Reddy's top picks: R Sreesankar

R Sreesankar, Head-Institutional Equities at Prabhudas Lilladher told CNBC-TV18, "We like pharma as weel as IT but look at the valuation differential between the two sectors. In many cases, pharma has actually run-up and the problem that you find with extremely high valuations small slip in terms of earnings estimate, when the valuations are quite steep the corrections will be sharper. What will happen is in certain cases if expectations are way to high, you are bound to see sharper corrections happening in many of the pharma companies."

"On a relative basis it is IT and pharma which we like. In our topic we have Glenmark Pharma, Dr Reddy's Laboratories and Aurobindo Pharma, we like these stories but as a sector, preference is for IT," he added.