Aditya Narain, Head of Research, Institutional Equities at Edelweiss Securities believes Pfizer’s COVID-19 vaccine in itself is not going to make a difference to the underlying conditions in India.

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According to him, this vaccine is not going to easily reach the shores of India. “Given the nature of infrastructure required to distribute it, given the fact that the developed markets have locked in all the supply, this vaccine in itself is not going to make a difference to the underlying conditions in India,” he added.

Narain is neutral on financials. He said the asset concerns were already priced in, but one still had to wait for lending activity to pick up.

Narain expects non-banking financial companies (NBFCs) to start lending out over the next quarter or so, which will be the take-off point for the sector. “At this point in time I would prepare for them rather than necessarily jump into that trade,” he said.

“I would be keeping my eyes very open on IT sector even though I wouldn’t necessarily expect too much performance in the immediate term,” Narain said.

On auto sector, he said, “Auto sector will tend to be a little vulnerable. The fact that these stocks are at multiple that are substantially higher than where they were, only makes it more of a case to be lighter in this space.”

He believes pharmaceutical sector is less global than IT. “So to that extent it will be more nuanced. So I continue to believe that you will get opportunities there but they are not necessarily decadal, not necessarily going to be linear and so you will have a certain amount of up and down there,” he said.

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(Edited by : Santosh Nair)

First Published:Nov 10, 2020 11:14 AM IST