Prefer pharma stocks, says Basant Maheshwari

Basant Maheshwari, Founder of The Equity Desk And Author of The Thoughtful Investor told CNBC-TV18, "In the pharmaceutical space you have to look at companies, there are two ways of analysing. I mean a broad theme for a retail guy out there who is looking at it try and buy companies that are selling mostly to the US market because once you sell into US are expected to have a certain amount of quality in your products. So, if you are selling quality products, if you are Food and Drug Administration (FDA) approved then you can charge higher also.""If you are selling to African countries you can get away with a little bit here and there also. So, if your company has been USFDA approved or World Health Organization (WHO) approved then you have a sense that this company is for real and the things that they are doing should make money over the longer period of time," he added."In pharma you can play anything, you can play anti malarial, you can play anti-aids, you can play anti- hepatitis. There is so much of pain and suffering and it is wrong for us capitalist to say money out of pain and suffering for people going ill. However, that is how it is. I think midcap pharma, small-cap pharma, large-cap pharma, pharma would be a space to be in 2016.""With the Fed increasing rate, the same old concept, and the Reserve Bank looking to decrease rates obviously it is dollar bullish. So, dollar can stay for a while but then ultimately it is dollar bullish. So, I think midcap pharma is a space to be sure," he said.