Stay away from pharma space, exit Sun Pharma: Vijay Chopra

Vijay Chopra of enochventures.com told CNBC-TV18, "I have been away from pharmaceuticals for about six-eight months now because of two reasons. One, the news from the US is not very good for all the pharma companies. The US FDA has been coming very strongly on all the companies, their manufacturing practices and these companies have to set their house in order."

"The second worry started domestically few days back when Modi government announced that they are going to introduce a bill which says that only generics would be sold in Indian market like it is done in most of the global markets. Therefore, my worry is that if at all this happens, all these large companies like Lupin, Sun Pharmaceutical Industries, Dr Reddy's Laboratories have large brand and each of the brands are worth a few Rs 100 crore."

"So if at all this happens, they could not command a premium on the products, so definitely balance sheets would be hurt. So it is better to stay away from pharma as of now although I strongly believe that it is a consumption story, it's there to stay but a lot of clarity needs to be thought on the way forward. So my sense is that one should exit Sun Pharma on rallies and maybe shift into something like BHEL which can get a better buck," he added.