Gautam Chhaochharia neutral on consumer staples

Gautam Chhaochharia, Head-India Research at UBS told CNBC-TV18, "Overall as a sector on consumer staples and discretionary we remain neutral to reflect our valuation concerns as well as the fact that at least versus this market and street expectations we are less euphoric about say the consumption boost coming from pay commission which we think will underwhelm market expectations. Having said that, there are obviously pockets which look interesting keeping in mind fundamentals and valuations. So, in tobacco space there is lot of concerns, negatives around what the government is doing seemed overdone, so that sector looks interesting.""Housing led or home improvement, that is a segment we have been positive even last two years throughout this concern about valuations. So, that segment still looks appealing. Last two years despite a tough macro environment home improvement sector delivered impressive growth. So, that is the reason we feel comfortable in assigning higher multiples there," he added.