Growth triggers missing in pharma, PSU banks to lag: Mahantesh Sabarad

The pharma sector has no growth outlook as patent expiries and earlier growth triggers are no longer there, says independent market expert Mahantesh Sabarad. The focus has shifted to domestic pharma growth, and companies will have to transform their business from generics to branded drugs in order to grow. Sun Pharma stands out as a company that has embraced this strategy. Meanwhile, PSU banking companies will continue to lag due to the NIM compression effect and a situation where deposit rate growth outpaces credit growth, leading to tough times ahead for banks.