Look at pharma, private banks, IT: Dipan Mehta

Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "Domestic consumer oriented businesses would be preferred and while IT would go down and or notch out too because of the global growth fears to an extent, I think local FMCG companies or consumer oriented business may be automobiles for that matter consumer appliances and home improvement companies are the ones which have been doing well past two or three years or so. Once these kind of things settle down globally those are the first sectors that investors should look at getting in to." "There is pharmaceutical which would be quite interesting. Depreciation of the rupee will benefit them more than perhaps even the IT companies where there is pricing pressure, which is a bit of a kind of safe haven because global economic growth does not impact medicine demand as much as say for some of the other products and services," he said. "Largely these are two sectors that one would look at investing in. The third of course would be private sector banks and private sector non-banking financial companies (NBFC). So, broadly the list of the stocks or the industry does not change because of this particular event or development. It is just that the price to earnings (PE) multiples that investors may pay for Indian equities or global equities may come under stress," he added."I just what to caution that worst is perhaps not over for our market and this kind of high volatility particularly helps no one. We would like to see the markets settle down, however, few weeks or months of sideways movement and then perhaps see it afresh."