Liquidity is very tight and non-banking financial companies (NBFCs) are skittish at this point in time, said Udayan Mukherjee of CNBC-TV18.

“There have been instances of haircuts which NBFCs, mutual funds, debt mutual funds have had to take in 2018, and significant haircuts too in one or two instances. One cannot blame them for liquidating paper of groups which they do not consider financially sound enough,” he added.

“You cannot blame NBFCs at this point in time to act in preservation of their capital as they see or feel deem fit. This kind of risk averse behaviour will only grow with the passage of time in 2019 and you may even see more instances of mutual funds selling down on a lot of these paper,” Mukherjee further added.

Talking about pharma sector, he said, “Maybe we are in the last innings of pain, the recovery will be patchy but FY20 will be a better year for pharmaceutical stocks as compared to FY19 or FY18. However, there is not that much conviction in this call because it’s a sector which is a little more difficult and complex to call than some of the other sectors.”