Exit HUL, Marico at current levels: Baliga

Baliga told CNBC-TV18, “For FMCG pack the best is behind them as of now. Looking at the way the economy is going to perform, looking at the way the monsoons have affected us clearly the rural spending is going to go down which was basically the main stay for most of these FMCG companies.”

He further added, “Going ahead at least the next 2-3 quarters I see a crack happening. At these levels I think one should be exiting, both HUL as well as Marico.”

“The way I see aviation space thanks to both Air India and Kingfisher Airways , the last quarter was extremely good. But going ahead do we expect the same sort of performance happening, I doubt because clearly the passenger load factor is clearly elastic to the fares and since the fares have gone up, I see the load factors really coming down possibly in the next one-two quarters starting now. So going ahead I don’t expect the same sort of results to repeat. I think at these levels with no aviation FDI coming, I suppose it’s a good time to sell.”