Mirae Asset Global Investments on Wednesday said it's positive on corporate banks and pharma sector.
In an interview to CNBC-TV18, Rahul Chadha, chief investment officer, said, "If you look at 2018, the country did relatively well from a regional context. MSCI Asia was down about 15 percent and MSCI India was down about 6 percent largely held by IT and the consumer staples. If you look at first couple of months, the global headwinds and the softness in the economy as indicated by the auto data may have impact on the market, but there are pockets of opportunity."
Chadha said elections would be the big event for 2019 as some consumption names are back of good governance and government etc, "So, if we have any uncertainty on that verdict over there, that may impact that particular part of the market."
Talking on pharma, he said, "The bigger issue one is grappling with in some of the leading names whether it's Sun Pharma or Lupin is, when does the US business bottom and show growth recovery? The domestic growth rates have slowed down from about 15 percent to 8-10 percent, but it's a bigger issue of when does the US business bottom and shows recovery? If you look at these names, what we have seen over last three years is consistent earnings cuts. So, it's very difficult to get a handle on the earnings for the pharma companies."
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