Positive on Tata Steel, Sun Pharma, Aurobindo Pharma, and Cadila, said Sudip Bandopadhyay, group chairman of Inditrade Capital.
Talking on steel sector, Bandopadhyay said, "I will be cautious. Bhushan Power deal probably is like a poison pill. We are extremely wary that Tata Steel shouldn't get it. If Tata Steel gets it, I think my rating on Tata Steel will come down. If JSW Steel gets it, we will have to be a little careful on JSW Steel. These companies already have a reasonable amount of debt in their balance sheet."
"Metal prices and the international trend is favourable right now, but the world is too volatile today. There are trade talks going on and there are trade wars. We don't know where things will settle. Temporarily, we are seeing lot of excitement on the metals front, but I would not like for a long term investor to get into JSW Steel at this stage. Because pending Bhushan Power issue is getting resolved and also the trade war scenario is becoming little more clearer. At this valuation, JSW is avoidable. If I have to buy a steel stock, I will still go back to Tata Steel and I will take some stake there," Bandopadhyay said.
Speaking on pharmaceutical sector, he said, "I have been bullish on pharma for some time. In fact, Sun Pharma has been one of our picks in the pharma basket. Yes, it has moved up quite a bit and it's looking fully valued at this stage. Also, overall, the way the pharma companies have kind of moved away from the businesses, which was troublesome, the way they have tried to correct the regulatory issues is commendable."
"For a long term investor in his portfolio, I think Sun Pharma even at current level looks good. However, the way we have been advising investors is to not to kind of risk your entire money in one pharma company. If you are interested in pharma buy a basket of pharma companies because regulatory action sometimes kind of rattles the boat. So, it is always better to buy 3-4 good pharma companies and continue with them for some time for maximum positive impact. Apart from Sun Pharma, we also like Aurobindo Pharma, Natco Pharma, Torrent Pharma and Cadila. I think a basket of these 4-5 pharma stocks can be made for the investors at current level," Bandopadhyay added.
Bandopadhyay is also positive on Titan Company Ltd.
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