Look at pharma stocks for long term: Dipan Mehta

Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "As buyers of pharma companies we would always like stock prices to correct even further. At the same time we have got investments at historical costs and these companies are also feeling little bit of pain over there as well. However if you go a bit deeper into this whole kind of thinking process the best way to approach it – not just pharma but on the whole any buying decision from a investor perspective is to wait for the corporate results."

"For example, if Sun Pharma or Lupin come out with a decent set of numbers and demonstrate that they have the propensity to grow the business 15-18 percent compounded over the next 3-4 years or so Then one could take the plunge even at these levels and not wait for a further correction. That is true for most quality companies. I have always maintained that when you are in the earnings season there is going to be a lot of individual stock volatility and investors can take advantage of it. It is also that point of time where analysts and investors do a reality check as to what the companies profits and what the forecasts are and what valuation it is trading at," he said.

The best strategy would be to have hands on as far as the earnings season is concerned – which companies will come out with decent set of numbers, what the managements have to say as far as the next 12 months are concerned and then look at what valuation number it is trading at and if that looks attractive then let us not worry too much whether it I going to correct by 5-7 percent more or so."

"If you are truly a long term investor with a 3-5 years view a 4-5 percent downside risk should not matter so much. There will be such companies, look at Symphony the results which came out today, you will have pockets – companies, sectors which have come out with results which will kind of surprise the street on the upside which will demonstrate that those businesses, those sectors continue to do well and investor money and investor flow will go into those companies and those sectors. It is just that one should not expect across the board rise in stock prices what we have seen for the past 12-15 months or so. Going forward it is going to definitely be far more selective than what we have seen over the past 12-18 months or so," he added.