Pharma is a safe sector to be invested in: Ajay Srivastava, Dimensions Consulting

In a chat with ET Now, Ajay Srivastava, CEO, Dimensions Consulting Pvt Ltd, shares his market outlook and talks about some stocks. Excerpts:

ET Now: Markets are also changing their look. We saw a massive Tsunami yesterday. What explains yesterday’s drubbing?

Ajay Srivastava: It is very simple. It was a global niggle and a local wiggle. The big development yesterday was the adverse reaction to the BJP’s 100 days of governance and this whole agenda of communalism affecting the economic policies coming to the fore.

If we look at the bizarre judgment of the Supreme Court, where the entire commerce of this country is getting affected, you come to the conclusion that there is a lot of rhetoric and very little activity on the ground to do business.

ET Now: So what is the view when the market does give us opportunities like yesterday, is it a blind buy on dips market?

Ajay Srivastava: It is a wonderful way to have an absolute wake up call to say that if you are in the midcap story, if you are in the small cap story, you will get these opportunities to sell out. Do not buy into these stories because the theme of the hour is big caps, well-capitalised companies.

Secondly, stick to the chosen field. The pharma sector is doing extremely well. Post the yesterday’s fall, we had lots of recoveries in the pharma sector today. Be there. Be in the IT sector too. I would still say that in spite of negative calls, buy oil marketing stocks on any correction because that is a place to be in. Get into large caps.

You have already seen DLF and Unitech in the real estate sector. See where they have fallen. Jaiprakash has gone from Rs 90 to Rs 36 or Rs 38. That kind of fall you will see in those sectors. So reorient your portfolio. Do not be greedy. Greed thrills, but kills you in the end.