The boardroom uncertainty at Axis Bank has been resolved, however, the strategy uncertainty still continues to remain, said Saurabh Mukherjea, founder of Marcellus Investment Managers, after the bank appointed HDFC's Amitabh Chaudhry as the managing director and CEO, a post that was held by Shikha Sharma.

"Chaudhry has a great track record at HDFC Standard Life but that is insurance business and so would prefer to wait and watch before committing to Axis Bank yet," said Mukherjea.

Talking about trade war concerns, Mukherjea said that emerging markets hinge around trade with the west and particularly the US. "India may be less linked from a trade perspective but from a liquidity point of view, it is fundamentally linked to global liquidity cycle and tightening in the US rates could put pressure on Indian economy," he said.

With regards to financials, he said the overall stock market is 15-20 percent overvalued and within that, financials is the biggest pocket of overvaluations. From these financials, the greatest concentration of overvaluation is NBFCs, HFCs and the wholesale funded banks.

Talking about pharma space, he said the frontline stocks like Dr Reddy’s, Lupin are still undervalued. “The pharma sector does need a meaningful bout of rupee correction now and then to give it a competitive vigour,” he mentioned.

Overall, the export oriented stories will do better going ahead, he added. However, he does not see an export story for Tata Motors.

First Published:Sept 10, 2018 11:15 AM IST