Broking house Axis capital said they are upbeat on domestic pharma stocks which are more of a consumption kind of play.

Domestic pharma stocks' valuations are reasonable and demand looks to be sustainable, said Kashyap Pujara of Axis Capital.

Structurally, rupee depreciation is a tailwind for IT and pharma space but one has to see if they have sustainable demand as key drivers and not just rupee depreciation as a tailwind, he said.

On higher crude prices and depreciating rupee Pujara said these are clear macro challenges for the market.

"One needs to keep in mind that we are in an inflation targeting regime and it up to the Reserve Bank of India (RBI) on how they rein-in the inflation expectations, which would over time let rupee come back to its fair level," he said.