Pharma, IT good space to invest: Rahul Chadha, Mirae Asset Global Investments

Rahul Chadha, Head of Indian Equities, Mirae Asset Global Investments, in a chat with ET Now talks about stocks to invest.

Talking about the three groups of stocks: Resource based, those using those resources like steel companies, copper companies. pharmaceuticals and IT, the India story whether it is consumer or infrastructure. If I had to reallocate and put my money into these three categories, which one do you think perhaps is the best part where I can go right now?

Domestic consumption and probably a more secular place like pharmaceutical; IT would be the best part. We clearly believe that there are two big trends which are happening in the world. First and foremost is a focus by companies in developed markets to cut their cost, improve productivity which is where IT companies, pharma companies benefit from outsourcing.

The second trend is really the income affect which is taking place in emerging markets like India where as incomes rise, people demand for more autos, people who have not been exposed to Western medicine look for more consumption over there. So that is really the two key trends which are playing. So consumption is a far more defensive secular theme. Balance sheets are good. These companies do not come to markets too often and that should hold well in this market.