Pharma stocks riding high with large institutional money sitting on them: U R Bhat

In a chat with ET Now, U R Bhat, MD, Dalton Capital Advisors, shares his views on the pharma space. Excerpts:

ET Now: What is your view about the pharma space like Sun Pharma, Dr Reddy’s and midcap companies like Aurobindo, Biocon and Glenmark? All of them have been sitting at life highs. Is there still further headroom?

UR Bhat: The fundamentals are quite sound in most of these companies and that is where most money has been made in 2013. The fact is that quite a lot of institutional money is sitting on these stocks.

Therefore, if there is going to be some sort of lull on the foreign institutional front, in terms of investing in India or even a reversal of their earlier inflows, these are the sectors that could get affected. But be that as it may, these are sort of stocks people will continue to like, because there is nothing really much that is coming out of the economy which suggests that the economy-sensitive sectors are going to do very well any time in the near future.