Prefer Aurobindo Pharma, says Gaurang Shah

Gaurang Shah of Geojit Financial Services told CNBC-TV18, "There are a lot of issues related with Divis Laboratories and the recent observations by the USFDA brings in concerns. We had a coverage and then we dropped it given the newsflow that surrounds the stock. My advice is that at current levels, one can make a switch in the pharma itself. We like Aurobindo Pharma and we are quite positive on this stock from a long-term point of view and not to forget this stock has been consolidating between Rs 650 and Rs 700 for a very long time and our sense is that your downside is extremely protected from a long-term point of view on Aurobindo Pharma. So if you can, make a switch."

Aurobindo Pharma ended at Rs 652.55, down Rs 5.45, or 0.83 percent on the BSE.