“Brace yourself for a double-digit kind of correction,” said Dhiraj Agarwal, Co-Head Equities, Ambit Capital in an interview with CNBC-TV18.
"The fall is still too small compared to the rally which has happened. We haven’t seen a double-digit fall in this rally even once in this market,” he reasoned further.
According to him, the IT sector will continue to do well. He prefers Infosys and HCL Technologies over Tata Consultancy Services at this point. “We think Infosys and HCL Tech are better growth levers as compared to TCS and the valuations are cheaper,” he mentioned.
“We prefer Eicher Motors as a nice long-term play. Hero MotoCorp has lagged on production innovation. The core business is a cash cow, keeps on growing at a reasonable pace but it is not an exciting company,” he stated.
From the pharmaceutical space, Agarwal likes Cipla, Lupin, Dr Reddy’s Laboratories (DRL) and Laurus Labs. He has a structurally positive view of pharma. “I would zoom out a little bit and move a little bit away from COVID related benefits, which will be short-lived and one time. More importantly, pharma is on a firm growth trend. We have a structurally positive view not just for this year but going forward into the next three-four years,” he pointed out.
He likes Info Edge as a company but is slightly worried about valuations, he said.
For the full interview, watch the video