Pharma stocks may have 10-15% upside from current levels: Gautam Shah
The Nifty Pharma index has outperformed the Nifty 50 index over the last month. The index is up over 6 percent, compared to the Nifty 50's 4.5 percent surge. Gautam Shah, Founder and Chief Strategist at Goldilocks Premium Research stated that the pharma index has the potential to see a 10-15 percent increase in value, even from its current levels.
The Nifty Pharma index has outperformed the Nifty 50 index over the last month. The index is up over 6 percent, compared to the Nifty 50's 4.5 percent surge. Gautam Shah, Founder and Chief Strategist at Goldilocks Premium Research stated that the pharma index has the potential to see a 10-15 percent increase in value, even from its current levels.
With the ongoing COVID-19 pandemic still affecting millions worldwide, the demand for pharmaceutical products remains high. Therefore, it makes sense that the industry could see further growth in the future.
Shah said, “The sector was in a mega bear market for almost 18-20 months. So that index has come up well and I see further upside. This finally looks like a turnaround for good; there have been multiple turnarounds which failed in the last 12 months, but this turn looks very good, and I do believe that the pharma index can give you anywhere between 10 percent and 15 percent even from these levels.”
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Talking about the real estate industry, he highlighted the strength that he has observed in certain companies such as DLF and Oberoi Realty. The real estate market has been hit hard by the pandemic, but Shah believes that these companies could be poised for a recovery as the economy bounces back. This is an encouraging sign for those invested in these companies or considering entering the real estate market.
Shah is optimistic about automotive industry and continue to like Bajaj Auto. He also likes Tata Motors from a long-term perspective. This could be because both companies have strong brand recognition and are well-positioned to benefit from increased demand for vehicles as economies continue to recover.
However, Shah did mention that there were some concerns he was monitoring. Specifically, he noted the important support level of 17,500 for the Nifty. This is an important indicator to watch because if the Nifty falls below this level, it could signal a more significant downturn in the market.
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