Vinit Sambre, head of equities at DSP Investment Managers, is of the view that the correction which started at the beginning of the year can be considered as healthy in nature as valuations had gone up too high.

"The valuations are now at a reasonable levels but not yet at a very attractive level and given the macro headwinds and elections next year market would witness volatility and some more corrections," said Sambre.

However, these corrections would pose an opportunity for long-term investors to build fundamentally strong companies in the portfolio," said Sambre.

"The current upmove seen in the equity markets could be because of good first quarter performance but one must remember that they are on low base of last year, so continuity of good performance is critical," he said.

Talking about the sectors, he said,"The house has started to adding pharma to their portfolios. Most cos in last 3 years faced severe USFDA rigour and there was also US generic pricing pressure but now the USFDA issues are on verge of clearing for some and some others have already cleared and approvals are in. The pricing pressure is also likely at the bottom level and so companies looking at international market could do well. Rupee depreciation is also helping them just like it did the IT".

The last year was bad for the domestic oriented pharma companies but they too are picking up momentum. “Some of these changes are structural in nature and makes sense to keep looking at selective pharma names,” he said.

"For investor with a long-term view it makes sense to look at equities but investors who have only a one-year view should rather stay away because there would definitely be volatility in market," said Sambre.

First Published:Aug 23, 2018 11:06 AM IST