PN Vijay positive on FMCG space

PN Vijay, Portfolio Manager, askpnvijay.com is positive on FMCG space.

Vijay told CNBC-TV18, “In our portfolio allocations, we slightly reduced our allocations to defensives about 15-20 days ago. We still have fair amount of FMCG which really is a defensive like ITC, GlaxoSmithKline Consumer Healthcare (GSK Consumer) is a stock which I like a lot. It is a blue chip with very strong brands.”
He further added, “We would keep fairly equal weight, so from overweight to equal weight. We are not so excited about pharma because Pharma is not really defensive. Only the Pfizers are defensives. To call Dishman Pharm, Divis Lab or Biocon defensive is rather offensive because they are subject to all sorts of global problems, ANDA approvals and sudden claims on lawsuits etc. We are underweight pharma except for a spot here, there like in Glenmark or so.”
“We are upping banking and financials services lately with every improvement in the yield. We feel 8.05- 8.1%, I think with treasury incomes and credit market loosening up a big, and you don’t have that liquidity pressure in the system. So, we are going slightly high beta with a tendency to go into rate sensitives. As far as FMCG is concerned we continue to be positive but with regards to pharma on a very selective basis.”