Pharma not the best sector for short-term traders: Sajiv Dhawan

Sajiv Dhawan, MD, JV Capital Services in an interview with ET Now talks about the pharma sector.

What have you made of the Sun Pharma-Merck JV and does it seem like it is going to capitalise on the strength and could one expect a meaningful return beyond two years timeframe as well?

Two years is a long time, so I do not know if many people who are watching the show will hold onto the stocks for that sort of time but Sun Pharma is a decent company. It is a good play in the pharma pack as a whole but as always with pharma stocks, they flatter to deceive at times.

Stocks like Strides Arcolab have had a decent run-up and even on corrections, they have shown a lot of strength and they bounced back. If you are buying a Sun Pharma, then yes, the news flow is positive but as you said at the beginning you have to wait one or two years, you are likely to be rewarded but the reality is the pharma pack is always subject to problems with the US FDA and regulations.

If they get the right drug in at the right time, you will see a sharp run up but not one of the most glamorous sectors and from a short-term traders perspective, probably not the best sector to pick on.