Bullish on textile stocks: Prakash Diwan

Prakash Diwan, Head - Institutional Business, Networth Stock Broking, in an interview with ET Now talks about FMCG stocks.

What about textiles? Everybody is talking about how the exports are rising, realisations are not too bad either and some of the stock prices have not done anything?

I am glad you came up with this point because textile is a sector that has been ignored a bit too long and as things stand, thanks to the kind of reduction in cotton output in China and the growing petroleum prices, which have a direct impact on the synthetic fibre side of the textiles business. It is distinctly the people who are into cotton based manufacturer of textiles, especially the denim specialist, Arvind, Alok, all of them would probably start seeing some sort of a momentum build, the realisations are not only good, they are sitting on very decent order books and the kind of capacity augmentation, which has happened quietly in the last couple of years when there is a global meltdown and a downside, which was very evident, that's going to play off very quickly, so you already have an Arvind, which has in the last few months moved to about what 40+ levels but I still see a distinct upside there for sound players like that, so it is a sector to watch and I am sure it will be in the new in the next few sessions also.