Radhika Gupta, Director, Forefront Capital Management shares her view on ITC .
Gupta told CNBC-TV18, "ITC and like most FMCG names because of the correction was already treading the higher side of valuations. You look at the moderating volume growth numbers for ITC and there is some cause for concern. You are obviously seeing that - how the market is playing out on that stock. I think this is the time to be a little underweight on the FMCG space both given how cost pressures are going to hit them as well as moderating volume growth in light of higher rates. So, may sources of pressure for ITC coupled with already high valuations."
She further added, "I am not expecting too much from capital goods space, but L&T is still alright even from an order book stand point. But as you see some of the small capital goods players, your Crompton Greaves , some of the capital goods, infra names, I think you will see a weak set of numbers coming in which is expected from the space. These stocks have also rallied substantially in the last 30 days, some of them up 15-20%. So, I think it's going to be a difficult time for these names between a combination of results and already kind of high valuations."
