ITC, HUL can be market performers, but don't expect them to withstand broader market correction: Tushar Mahajan

In a chat with ET Now, Tushar Mahajan, Nomura, HD-Derivatives - Listed F&O, shares his view on FMCG stocks.

ET Now: What is your view on ITC? The stock showed some resilience last week, but has started cooling off with the market, given its significant weightage in the equity benchmarks?

Tushar Mahajan: Stocks like ITC have had other headwinds as well. They started off correcting much earlier than the market.

There would surely be some investors who would be looking for some value buying.

My own sense is that stocks like ITC and Hindustan Unilever, and some pharma pockets, could probably be hiding spaces.

These counters can either be market performers or slight outperformers. That said, high beta counters are definitely going to see a selloff. For ITC at present levels of Rs 340, one can do a relative market trade versus the Nifty. But, if the absolute trend is negative, then I do not think that ITC can withstand selling pressure in the overall broader markets.