Pezarkar neutral on FMCG space

David Pezarkar, Head - Equity, Daiwa Mutual Fund is neutral on FMCG space.

Pezarkar told CNBC-TV18, “As far as our portfolio is concerned we are neutral on FMCG sector because we have seen over the past month or so there is a increased tendency towards more risk-off kind of trades and as far as this quarter is concerned I think we will see strong numbers from FMCG companies as a whole. I think they have taken enough of pricing increases to offset raw material cost increases, plus I think we will see decent volume growth.”

He further added, “There are no fundamental negatives except that some investors are uncomfortable as far as the valuations are concerned but then if there is a strong momentum then I thinks the valuations have been known to take a backseat and that is what is happening. So I think as far as general investors are concerned it would be better off being in line with the market as far as this particular sector is concerned.”