IT, healthcare should be overweight sectors: Girish Pai

In a chat with ET Now, Girish Pai, Co-Head of Institutional Equities, Centrum Broking Pvt Ltd, talks about some of the defensive sectors.

At a time like this, what is the good defensive line of thinking?

Girish Pai: If you are looking at defensive sectors, right now, I would probably look at IT. We have been advocating a defensive stance at least till the middle of the year and within that, I would probably say IT should be an overweight, healthcare should be an overweight, selective FMCG companies should be an overweight. I would even look at telecom to be overweigh at this point in time. So these are sectors I would consider as defensive and towards the middle of the year, I would probably get a little bit more aggressive, would want to be have higher weights in interest rate sensitive sectors because I still continue with that second half upward trend theory that, general consensus has moved towards that that second half of 2011 will be better than first half and I continue to believe in that because inflation despite yesterday’s numbers, I believe that it is probably going to come off. That is point No. 1. Second the rate tightening exercise is probably going to come an end. We could potentially see another 25 BIPs hike happening now.