Metal, PSU & pharma to lead market; FMCG showing signs of bottoming out: Sandeep Tandon

economictimes.indiatimes.com:

Sandeep Tandon, CIO, Quant Mutual Fund, says “metals, PSU, pharma are very big themes and will lead the market. FMCG is also showing early signs of bottoming out. Each and every stock has not bottomed out, but some characteristics are there where we will look for a buying opportunity at bottom levels. I am not in a hurry so that we have to buy today only, but they are showing early signs of bottoming out.”

Any specific reason why FIIs are selling because I can understand that the local crowd can get jittery, but FIIs typically have a very long view. They are often buyers when there is distress. Right now, FIIs are causing distress with rampant selling. Who are these FIIs who are selling and why are they selling in the month of May?
Sandeep Tandon: It is not only in the month of May, FIIs have been sellers for a while. They used to run very concentrated holding in the past. If you can recollect, few banks, few technology companies, few FMCG and few consumption names was their thesis. So, they made very concentrated bets. All these stocks which they owned were part of the admired territory which peaked in September 2021 and are still correcting.

Now, with that background, we have noticed that they are pruning down exposure in these concentrated bets which they have for a while and they are actually getting into more diversified portfolios. That is the reason a lot of people have participated in new-age companies and in the IPOs. Sometimes we also wonder why they do not participate in the secondary market where