Kenneth Andrade, Founder & CIO, Old Bridge Capital, in an interview with ET Now said he is still positive about the IT and pharmaceutical sectors.
"The sector that does not favour us in terms of valuation but has an enormous amount of visibility as far as the macro environment is concerned is tech – IT services. Most of the Indian companies or all the Indian pharma companies have very robust balance sheets and their product portfolios are significantly higher or larger than 2015," he told ET Now.
"We are getting them at valuations which are significantly better than 2015 or any time in the last five years. Those are the extremes of businesses; one is linearly doing extremely well which is IT and pharmaceuticals which have not done very well, but offers some value still and still has a macro opportunity which is significantly larger than the previous peak," he added.
Andrade said the banking sector is going through a valuation cycle as they are available at a significantly cheaper valuation.
"You are getting them at a price point which is significantly cheaper than what you have seen for some time and that is something which is attractive for a couple of years or shall I say at least for the next one year. when you look at this industry, it is down to probably five or six banks that are there out of 30 odd listed banks that are there in the marketplace. They can be a part of your long-term portfolio," said Andrade.
Andrade said what the market is witnessing now is on expected lines.
"Whatever is happening is expected because quite simply, we had two great years leading up to 2022 and this correction was more or less expected in this cycle. That is what we have got and we are trading fairly where we left off at the beginning of the year," he said.
Disclaimer: This article is based on an ET Now interview published by economictimes.com. The views are those of the analyst and not of MintGenie.