GST will give a big boost to FMCG sector: Neeraj Deewan
People back FMCG as they are the defensives which everyone likes to hide behind when the markets are volatile so that can also be one reason.
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In a chat with ET Now,Neeraj Deewan, Director, Quantum Securities,shares his views on FMCG sector.
ET Now: FMCG sector is doing well, GCPL for example had a big move, last week we also saw Britannia having a decent outing, is this pricing in of some margin benefits that will come into these companies in quarter three or is there something else with the story?
NeerajDeewan: There are couple of reasons, of course, one is margin improvement which people are factoring because raw material prices have come down. We saw Bajaj Corp oing very well because of that.
Implementation of GST will also give benefits to these companies going ahead.
Also, due to volatility we saw a good correction in the market and then little bit bounce back. People back FMCG as they are the defensives which everyone likes to hide behind when the markets are volatile so that can also be one reason.
ET Now: FMCG sector is doing well, GCPL for example had a big move, last week we also saw Britannia having a decent outing, is this pricing in of some margin benefits that will come into these companies in quarter three or is there something else with the story?
NeerajDeewan: There are couple of reasons, of course, one is margin improvement which people are factoring because raw material prices have come down. We saw Bajaj Corp oing very well because of that.
Implementation of GST will also give benefits to these companies going ahead.
Also, due to volatility we saw a good correction in the market and then little bit bounce back. People back FMCG as they are the defensives which everyone likes to hide behind when the markets are volatile so that can also be one reason.
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