According to Ajay Srivastava, the market has seen only one-tenth of the pharma boom that is expected from the industry over the next 10 years and so, one must not get out of the pharma bandwagon.
Ajay Srivastava, CEO, Dimensions Consulting believes the market will only go higher from its current levels of 7800-7900. According to him, the improvement in macros, initiation of policies by government, investor confidence can only push Nifty higher from its current levels.
In an interview to CNBC-TV18, Srivastava says that big capitalised companies are likely to give good returns in the next six months. However, lending will get hostile and everything related to lenders will come under scrutiny giving rise to the cost of borrowing.
Talking specifically about stocks, Srivastava says L&T will benefit with government’s decision to expand defence and there is a possibility of a change in the management of the company. He gives a target price of Rs 2500 for the stock.
He goes gung-ho over pharma sector and sees long-term rally for large cap pharma stocks. According to him, the market has seen only one-tenth of the pharma boom that is expected from the industry over the next 10 years and so, one must not get out of the pharma bandwagon.
“The number 1 investor interest in this country is in pharma. Fundamentals, demographics, government policies are all favouring the sector. If you invest money today, you can look at serious multiples in the next five years, he adds.
Going ahead, he expects oil marketing company BPCL to gain another 30-40 percent from its current level of Rs 670 after crude prices fell sharply below USD 102 per barrel.
Furthermore, Srivastava says he will double his stake in United Spirits if the stock fell to Rs 1800 from its current Rs 2400 level.