Prefer banking stocks: VK Sharma

Sharma told CNBC-TV18, "I think at this point of time investors would do well to keep their money in FMCG as well as the pharma stocks although pharma is not as safe as FMCG. But the fact that FMCG is only as safe till you hear about the monsoons. These days lot of retail sales happen from the fact that rural areas, so monsoons play a good role in terms of to what extent they will be able to ramp up the sales. If the guidance for the monsoon is normal, or above normal then this sector will continue to do well."

He further added, "But for the time being if you want to look into absolute out performer then it is banking that takes the cake. I will have to go with the banks at this point of time because looking at the ground situation where foreign exchange is depleting every day there is requirement to boost the confidence and interest rate cuts is what is required, that is what makes us put more exposure into banking at this point of time."