Domestic cyclicals likely to see severe contraction in sales; prefer pharma, FMCG stocks: Hemindra Hazari

In a chat with ET Now, market expert Hemindra Hazari shares his view on defensive sectors.


ET Now: Give me a flavour of your current holdings? What do you own? How much of your portfolio currently is in the cash right now?

Hemindra Hazari: It should come as no surprise that a large chunk of my investable money is in cash. But I have exposure to IT, pharma and FMCG sectors because I believe that these are safe havens. I really do not see domestic cyclical cycle reviving for the next one year or so.

ET Now: Is FMCG really a defensive sector? If you buy into FMCG stocks right now, it could be the most aggressive call because valuations are just not on your side and even if we forget about the global growth, with the exception of an HUL and Emami, there is no volume growth.

Hemindra Hazari: We are seeing some volume growth, but there is no doubt that the growth in volumes and sales is tepid, which is a matter of concern.

But since you asked me where I would like to be in equity, I would say that I would prefer to be in these names because I am expecting a severe contraction in sales for the domestic cyclicals. That is the way I see it. So, while you will still have sales in the FMCG sector, they may not meet the Street expectations.