HSBC Global underweight on FMCG space

Dhiraj Sachdev of HSBC Global Asset Management is underweight on FMCG space.

Sachdev told CNBC-TV18, "We have not seen any revival on the festive season or seasonal sales as far as consumer business is concerned besides the fact that as I have read, just to reiterate, we believe that the valuations relative to other sectors, be it auto, auto ancillary, banks, cement, selective infrastructure capital goods plays, is pretty expensive. So we are underweight on FMCG and relatively overweight on the other side of the market or other segments."
He further added, "IT has been in overweight across funds and given the fact that despite rupee weakness the demand side equation is not turning in favour plus the spate of the guidance downgrades, which is happening from bellwether stocks is not helping the sector and the other sectors are coming back on the forefronts. So we believe that the relative switch from IT to other sectors though temporary will continue to happen."