FMCG space safe: Vivek Mavani

Vivek Mavani, vice president-Institutional Equities, Brics Securities, shares his thoughts on FMCG sector.

ET Now: What about the FMCG space? Do you think there are opportunities there right now?

Vivek Mavani: Well definitely, of course. When you say they have not participated, yes they have not participated in the last 2 months but if we look at whole of 2011, their participation was humongous. While the whole Sensex and Nifty were down 25%, FMCG sector was actually positive.

So you had a huge relative outperformance and maybe part of that outperformance is only getting corrective, where now the indices are catching up while the consumer stocks stay high.

Having said that, there are still some interesting opportunities that I would continue to look at. One is Bata, the second is ITC in the large cap space which still look interesting and can be considered from an investment perspective, not a trading perspective.

Maybe if markets were actually to correct, whether it is temporary, whether it is a few days’ correction or few months’ correction, I do not know, our technical friends will tell us better but being cautious, this is one place to park and hide in the near term.