Pharma, FMCG will perform better than real estate & interest rate defensives: Rajan Malik

Rajan Malik, Head-Equities, Private Client Group, MF Global in a chat with ET Now gives his views on various sectors

ET Now: Specific sectors that you are recommending in the market or bullish on at this point in time. All the index heavyweights like banks, IT have had their macro concerns?

Rajan Malik: We have been cautious on the current markets. Until recently, we were overweight on defensives. Now, the run up that some of the stocks have seen does not look like a good one. So we would like to increase our cash positions further and take hedges.

We believe that the entire market segment could correct, given the fact that there seem to be no positive triggers locally or internationally right now. Things could get much worse before they get any better. Now, it would be possible that there are no places to hide in this market.

But, always defensives like pharma, FMCG will perform better than the other high beta alpha sectors including real estate and interest rate defensives.