The problem with tech stocks in China is a great opportunity for India, said Andrew Holland, chief executive officer (CEO) of Avendus Alternate Strategies.

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In an interview with CNBC-TV18, Holland said, “With the new kind of tech stocks being listed, given the problems in China, it can attract a lot of foreign flows towards the Indian market, because it's a great opportunity. It's about where investors want to be in terms of disruptive industries, and having those regulatory problems that China is facing, I think you will see more flows coming and that's what is holding the markets up at the moment and obviously, retail investors are also very active with the high amount of shares trading at the moment.”

He further mentioned that outflows from emerging markets that took place in July are coming back to India. He said, “Market continues to drive on the liquidity momentum. A few other factors which are helping India from the emerging markets/Asia regional perspective is the crackdown on the regulatory environment within China. So, whilst we saw those outflows in emerging markets in July, which affected India because of our weightage as well, I think those flows are coming back to India.”

On autos, he said, “We are a bit cautious on the auto sector in general and with the shortages on the supply side, particularly chips (semi-conductor), it's going to hold back the industry. I don't think the pricing power is there as it was six months back. I will probably be looking at the auto parts sector because that will still benefit from global growth.”

On pharma, Holland said, “There is always pressure within the pharma industry, but it's short-lived and we will start to see the pricing power coming back to the companies.”

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(Edited by : Dipika Ghosh)