Good time to accumulate banks, financials; wary of inflation: DSP Investment’s Sambre

Vinit Sambre of DSP Investment Managers is positive on the pharma sector, as the companies are making the right investments to tap opportunities in India and globally, he told CNBC-TV18. He is also looking to accumulate shares of banks and financials despite the near-term challenges for the sector.

“One of the segments which we may take as an opportunity will be the banking and financials. However, we believe that the next few months will be challenging and it's uncertain how long will this last, but these are the segments which we may want to accumulate,” he said.

On pharma, Sambre said: “I have a positive view on the sector not because of the current opportunity which is coming up with the vaccines getting sold in the private market and to the state government at the better price point. So that is going to create decent size opportunity for the players.”

“The demand trajectory is likely to be better both in domestic as well as in the international market and we have a strong presence in the international markets. So this is one sector where we have achieved scale and size in the Indian and in the international markets. The demand for medicines is going to increase and these companies are making the right investments to tap opportunities in India and globally,” he said.

The Indian pharma sector is strengthening its Active Pharmaceutical Ingredient (API) capabilities, Sambre said.

On the overall market, Sambre said, “It is difficult to make predictions on indices, as was the case last year. However, this year, the inflation at some point will start hurting, but if we are able to do better in terms of vaccination the market may start reacting but the market will again turn nervous considering the fact that either the inflation is causing the margins to be impacted or demand which was recovering may get hurt. So we will have to think about these new variables when we are thinking of rebound in the market.”

For entire interview, watch the video