Bullish on pharma, Aurobindo Pharma and Indoco top picks: Vinay Khattar

In a chat with ET Now, Vinay Khattar, Head Research (Individual Clients), Edelweiss Financial Services Limited shares his market outlook. Excerpts:

ET Now: A word on the pharma pack because that is buzzing. What is the talk with your clients, now on any of the three or four active names?

Vinay Khattar: Aurobindo Pharma looks like a good bet, though there has been a sharp run up in last few days and there are a couple of other very small companies which could be of interest and one of them is Indoco, which is again, on the pharma side.

If you look at the entire pack, two or three big triggers which have been playing out for all export dominated sectors, including pharma, IT and certain other stocks in auto ancillary, have been rupee depreciation, appreciation of the yuan and a clear demand pick up in US and Europe.

In addition, specifically with regard to pharma, the generic play continues to hold on very well and the molecule specific-news, as and when it comes, causes traction on individual pharma stocks. Therefore, pharma seems to be a good bet, but so also are other stocks which are export-focused.