FMCG is fairly valued: S Naren, ICICI Prudential AMC

S Naren, CIO-Equity, ICICI Prudential AMC in an interview with ET Now talks about FMCG sector.

There were also talks about how with the new tax structure, higher consumer spending because of higher cash availability with them could also prove beneficial for the entire FMCG pack keeping all these factors in mind and the possibility of FMCG companies gaining from higher consumer spending is that a space that looks really positive to you?

Well certainly it is not an interest rate discretionary so as even if interest rates were to go up I do not think people are going to eat lesser FMCG items or use lesser FMCG items coupled with the fact that excise duties gone up and the many of the FMCG companies are full tax paying companies and therefore the drop reduction in tax surcharge should also help the FMCG space. So it has got a positive trigger from the budget, however the sector is fairly valued it is not like there are many cheap stocks at this point of time in the sector that is where we have a problem we like the sector, however.