PNS | DEHRADUN
The financial markets have experienced significant volatility over the past few months, leaving investors on edge. A sharp drop of 3,000 points was followed by a partial recovery, creating a sense of uncertainty. Yet, amidst this chaos, Sorbh Gupta, Senior Fund Manager – Equity, Bajaj Finserv AMC remains bullish on certain sectors, particularly pharma and wellness, believing they are poised for growth in the coming years.
Gupta explains that the equity markets are often a blend of two key elements: reality and expectation. The reality, he notes, is somewhat changing, with disappointing GDP growth numbers and mixed signals from the world’s largest economies. This shift in reality and elevated return expectations (in one and a half years) has added complexity to market predictions. However, despite the short-term fluctuations, Gupta believes that the rough patch seen in GDP numbers is likely temporary and will improve over time.
In such a volatile environment, His focus has been on identifying sectors that present opportunities. Sorbh highlights the large-cap space, which, after recent corrections, is now offering high-quality companies at attractive valuations. These companies, he believes, are well-positioned to perform well as the business cycle turns in their favor. His positive stance on consumption trends is rooted in the belief that relative to historical valuations, consumption companies are attractively priced, and he expects a cyclical uptick in consumption that will benefit them in the long run.
He views the pharmaceutical industry as a key growth sector, with significant opportunities in CDMOs, US generics and domestic pharmaceuticals. As demand for healthcare and wellness products rises, these areas are well-positioned for expansion. This makes the pharmaceutical industry highly attractive, leading Bajaj Finserv AMC to maintain an overweight position in the market. Drawing from historical sector performance, he noted the cyclical nature of healthcare, emphasizing that the current market presents a nuanced investment narrative.
