Pharma, consumer discretionary look attractive: Nilesh Shah

Nilesh Shah - MD & CEO at Envision Capital told CNBC-TV18, "There are three kinds of sectors we think make the case from a thematic perspective. First of all from an international markets or exports point of view, I think pharma which had witnessed lot of euphoria and exuberance has corrected significantly. We see a lot of pharmaceutical stocks corrected already about 30 percent from their highs over the last few months. I think probably another 5-10 percent correction in some of the pharmaceutical names clearly will offer a lot of value in some of these pharma companies." "We expect that some of the challenges which come in from the USFDA side are likely to ameliorate given that USFDA itself has truncated its own approval cycle. I think pharma looks good. There is no China fear out there. That is one sector where we are clearly competitive; India is clearly competitive in that space," he said."From the domestic sectors, cement has corrected quite a lot, realisations are lower and capacity utilisations are low. We believe that over the next couple of years as the infrastructure cycle picks up you are going to see a significant demand coming in from cement. I think these stocks have corrected quite a bit. You really have no China fear out there because cement is local or a domestic commodity."He further said, "We clearly believe that over a period of time interest rates are headed lower and the roll-out of the 7th Pay Commission and some of these other liquidity drivers are likely to create a reasonable demand in consumer discretionary space. So, I clearly think that these three sectors, one coming in from the global markets and the other coming in from governments spending, the third coming in from consumer spending, these three sectors we believe are relatively insulated from whatever the global unwinding or the global competition which is there. So, clearly these three sectors look very attractive from a two to three years' investment periods.""If you want to have exposure to the banking space, I think in this current environment the private sector banking still looks good. Again there has been a correction but again there are relatively better opportunities. So, between private sector banks and consumer discretionary, I would still prefer consumer discretionary because the growth momentum is going to be a better out there. I think it will remain the year of quality, it will remain the year of bottom-up stock picking that is something which will continue to prevail. That was the story in 2015 and I think it will continue even in 2016."