Prefer IT, pharma stocks: Ajay Bagga

Ajay Bagga, Market Expert told CNBC-TV18, "Clearly, IT and pharmaceuticals stand out, you are getting the benefit of a depreciating rupee and it is a big play on a good recovering US economy and also Europe where the ECB will probably step up by December. They will increase their quantitative easing (QE) into a QE2 and do more of bond buying to go and increase their economic growth. So you are well positioned in IT and pharma in that sense, I would recommend that over banking but within banking, private sector banks have taken a big haircut and they are looking better than they were a month back because fundamentals have improved if anything. For PSU banks, I would still say it is a no go zone, stay away from those. So, IT and pharma clearly are still looking good." "August numbers were good, especially pharmaceuticals really outperformed rest of the market. This week has been not that good but on a broad basis you would be pretty well off in IT and pharmaceuticals," he said.