It is wise to park your money in defensives: Kotak Securities

In a chat with ET Now, Shashank Khade, Executive Vice President-Portfolio Management Services, Kotak Securities, shares his views on defensives.

ET Now: What about defensives? In the near term, is it wise to book profits in names like Ranbaxy or Unilever or do you think there is sustained headroom in these names?

Shashank Khade: The government actually does not start taking decisions and we do not see sort of urgency shown by the government in their actions, it is still wise to remain in such names. The moment you actually start seeing the government actually beginning to act and things really rolling on, that is the time when one can possibly move, take some money off certain FMCG names, which are clearly very expensive because they may tend to consolidate and possibly money will start flowing on the other side.

So it is very clear that once the government starts taking some steps to accelerate the GDP growth, that is the time when the real economy stocks, the capex, infrastructure related stocks may actually be worthwhile to take a look at but till the time, it could be status quo. Since the next quarter is also not going to be as great for a number of companies, so it is better to really park yourself in such names till the time we actually see action taken by the government.