Negative trend seen in FMCG stocks: Gaurav Doshi

In a chat with ET Now, Gaurav Doshi, VP Equity Specialist, Morgan Stanley PWM, talks about FMCG Sector.

What about mid-cap FMCG because that as well has been showing you some amount of traction? The results have been good and purely because they are pure defensives from a market perspective, would you be a buyer into those stocks?

I have a different view on mid-cap FMCG and FMCG stocks per se. We have seen impressive volume growth in these companies but we think that the margin trend will continue to be negative over the next 2-3 quarters just because of the way commodity prices, competitive pressure, advertisement costs are all going up.

We tend to see money flow into these stocks when the market is nervous and is sceptical, so under 5500-5600, these stocks would continue to be in the trading range but once the market gets back into the momentum mood and we see sort of a positive bias emerge, these stocks will get forgotten, so I would not really be chasing FMCG stocks as of now.