Prefer urban discretionary names in the FMCG space: Amit Khurana

In a chat with ET Now, Amit Khurana, Co-Hd Eq & HoR, Dolat Capital Market, shares his views on FMCG.

ET Now: I like to draw your attention to what is happening in the FMCG space, that was the hiding space and that has been the hiding space. Given that global risks are back, volatility has gone up, can FMCG stocks once again outperform?

Amit Khurana: On a relative basis, they could, but our sense is that the valuations leave very little room for you to make absolute returns there. You have to be very careful, because let us not forget the rural India is also struggling through some poor numbers. So, when we look at FMCG, we prefer the urban discretionary names there rather than the staple space which seems to be fairly well-captured, in terms, of valuations and growth numbers as of now. So, I would be little wary of playing the staples category, and prefer the urban exposed FMCG names.