Markets slipped for the second straight week with the Nifty and Sensex losing over 1 percent each. Pharma was the only index that ended in the green while midcaps & banks underperformed.
In an interview to CNBC-TV18, Pramod Gubbi, co-founder of Marcellus Investment Managers, said, "Pharma is a defensive sector in some ways. It doesn't get affected by lockdowns because if there are sick people who need medicine they will need medicines irrespective of lockdown."
"However an increase in COVID doesn't necessarily mean people will start taking more medicines either. So, I don't see any reason why people should see a surge in demand for pharmaceutical products because of COVID. Companies which have exposure to COVID related products will benefit but it is not like people will suddenly start consuming more of paracetamol or anything on that note."
"So we are quite comfortable with our long-term positioning as far as healthcare stocks is concerned. We own Divi's Laboratories, Dr Lal Path and Abbott as well and neither are we thinking of increasing or reducing it based on what we are seeing around us."
Rohit Srivastava, founder & strategist at Indiacharts.com believes that investors should bet on capital goods sector for next week. He remains positive on Siemens, L&T and Thermax.
"One sector to look at is probably capital goods. Siemens, L&T and Thermax, are interesting plays on the capital goods side because that sector is also turning along with economic cycle and cyclical stocks."
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