Expect sector rotation out of FMCG sector: U R Bhat, Dalton Capital Advisors

In a chat with ET Now, U R Bhat, MD, Dalton Capital Advisors, shares his views on the current outlook of the FMCG sector. Excerpts:

ET Now: Volume growth and margins of HUL, ITC & Colgate are under pressure. Do you think FMCG companies could suffer more?

U R Bhat: It may suffer if there is no volume growth or pricing power. Over the last one year, this has been a hiding place for most big investors. Given the fact that the results have not been good, it would be a matter of time before there is some rotation out of this sector, especially if there is something good coming out of the economy.