Prefer largecap IT, pharma stocks: Devang Mehta

Devang Mehta of Anand Rathi Financial Services told CNBC-TV18, "After such a deep correction and I agree what Mehraboon Irani on lot of counts that why market has come down. Most of the negatives seem to be priced in the market and any positive trigger like passing of goods and services tax (GST) for example or the land acquisition bill could act as a positive trigger. There are lots of opportunities in the market when your rupee depreciates. IT and pharma stocks were the leaders in terms of when the markets started to rally may be around 8,000 – 9,000. They also felt as severer jolt as when the markets started falling."

"However, this leg of rally again starts back, then there are fundamental factors in place after a deep correction on all the four big IT stocks after bad set of numbers. Again the scenario becomes quite good for all these companies. So, largecap IT as well as largecap pharma are the stocks that we have started suggesting to our clients since last 2-3 days. Also some of the stocks in the auto universe as well as capital goods universe which have also shown a good bit of correction without sort of any genuine reason are the stocks that we have started recommending to our clients at this point of time," he said.