Kotak Mutual Fund underweight on FMCG sector

Harsha Upadhyaya, Head of Equities at Kotak Mutual Fund is underweight on the FMCG sector. According to him, the sector could underperform going forward.

Upadhyaya told CNBC-TV18, "FMCG has been a sector where we are underweight and this stance we have been continuing for last couple of quarters. Our take on the sector is the valuations that are not very inexpensive, they are quite rich."
"At the same time we are seeing some amount of slackness in volume growth and some pressure on margins that is the reason we believe that this sector could underperform going forward. Hence we hold underweight stance," Upadhyaya said.