Expect to see some correction in IT and pharma stocks over the next 3-6 months: Nandkumar Surti

In a chat with ET Now, Nandkumar Surti, MD & CEO, JPMorgan AMC, shares his views on IT and pharma stocks.

ET Now: What is your view on the IT and pharma space?

Nandkumar Surti: From an overall sector perspective, I would not say that there is anything wrong with IT and pharma. The only thing that happens in a situation like this is that when you are looking at growth coming back into the economy, you would always want to move away from the defensive sectors.

Therefore both IT and pharma will continue to grow, but since the valuations were stretched and portfolios were overexposed to these sectors and given that we are now looking at cyclicals, you will see some correction in these stocks over the next three to six months, though they will make a comeback after that.

Hence there is nothing to suggest that anything is wrong with IT or pharma per se, but it is just that the valuations are stretched.