We believe, at some point, fundamentals will take over the market, said Shekhar Sambhshivan, investment director at Invesco Hong Kong in an interview to CNBC-TV18.

Share Market Live

NSE

Speaking about specific sectors, he said, “how we see here is more coming from revenue traction and visibility of revenue going forward because it was difficult when the pandemic started that how much wealth destruction has happened across sectors and how much more to happen.”

“Therefore, we have stayed away from those sectors or sub-sectors where a significant amount of wealth destruction, as well as questionability in terms of income generation, is happening, maybe hospitality, travel and tourism-related space because we do not know how things will pan out there,” he added.

“However, pharmaceuticals had a very good run between 2005 and 2015. In the last 5 years, they had issues related to regulatory problems or US revenue easing off. We are seeing some consolidation happening there and going forward perhaps if those 2-3 things get sorted then we should be looking at a reasonably good profile both on the topline as well as on the bottomline,” added Sambhshivan.

Watch the video for more