The quarterly numbers coming from the pharmaceutical and IT sectors, so far has been good, Anish Damania, MD & CEO, JM Financial Institutional Securities in an interview with CNBC-TV18.

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Since both these sectors are showing a greater certainty in earnings growth, they will continue to outperform other sectors as investors won’t mind paying a premium, Damania said.

“If IT continues to demonstrate the certainty aspect, valuations will keep on getting elevated,” he added.

On ITC, Damania said valuations had come down close to levels where it now just needed a trigger for investors to have a re-look at the stock.

In the financial sector, Damania said the collection efficiency of microfinance institutions (MFIs) and small financial banks (SMBs) was a healthy 90 percent plus, he said.

According to Damania, there is some pent-up demand in auto sector and this is expected to manifest itself in the upcoming festive season.

First Published:Oct 12, 2020 7:20 PM IST