Vikas Khemani positive on Sun Pharma

Vikas Khemani, CEO at Edelweiss Securities told CNBC-TV18, "We are positive on Sun Pharmaceutical Industries for the simple reason that post this merger of Ranbaxy Laboratories there are a lot of operating leverage possible. It was a very good merger. Having said that a lot of upside of that has already been factored in, it is an expensive stock, so to that extent you have to keep your exposure limited. However, it is a good company; we do see that there are still a lot more levers."

"Lupin is also doing phenomenally well. We are bullish in pharma because there are still a lot of tailwinds, there a lot of opportunities in the developed markets and I do believe that it will continue to do well. Currency environment looks favourably positioned, so I don’t see many negatives in the sector except high valuation which will continue if you are in a strong liquidity environment because investors will also want to have balance of defensive as well as cyclicals," he said.