Consumption stocks likely to do well: P Phani Sekhar, Angel Broking

P Phani Sekhar, Fund Manager-PMS, Angel Broking, in a chat with ET Now, gives his views on consumption stocks


The theme of last week has been consumption so to say with a lot of these consumer related stocks, some of the defensives like ITC. Do you think that theme will continue? ITC, some of the midcap consumption stocks doing very well even this week or probably for the next couple of weeks too?

It will and I presume that not because investors really love that theme but because they do not have any option beyond that theme. While there is great value from a real long term perspective in some of the investment related sectors but since there is no visibility for the next 4 to 6 quarters and things might get a bit worse for them, especially considering the fact that these stocks have really rallied 30-40% from their August lows. Even longer term investors are a little bit wary about entering them. That leaves them very little option except bidding these consumption stories a little bit higher. I would tend to believe that consumption stocks will keep doing well till you actually see some fundamental change in the long term investment related themes.