Some good buys in the pharma space, but be very selective: BP Singh, Pramerica Mutual Fund

In a chat with ET Now, BP Singh, Executive Director & CIO-Equities at Pramerica Mutual Fund, shares his thoughts on the pharma space. Excerpts:

ET Now: Pharma is one pocket that has no correlation with either rates or the market mood for the last 12 months. It continues to do well. What is your sense on the pharma pack at large?

BP Singh: This sector is doing well. The pharma sector is benefiting from a lot of drugs which are going out of it, and globally, they are able to capture the market share in the regulated market. But there are a few companies that are benefiting because of this.

Because this sector has done well and there is a lot of liquidity flowing in, people are excited. They start equating all companies with the same brush and they start buying everything available, including those that has not moved up.

One needs to be very selective. There are a few companies that are doing extremely well and they are underweight, but there are others that are overvalued. We are not as bullish on this sector to the point that we start to feel every company in this sector will do well. But we do believe that there are certain companies which still continue to do well because the market overseas is big and the Indian companies are cost competitive and so, some of them are naturally going to benefit.