Should investors buy select IT and FMCG stocks? Anand Tandon answers

economictimes.indiatimes.com:

«FMCG is a default play, you would want to kind of, because many of the staples, etc, have not done anything for many years now. But that said, it is not as if the volume growth will pick up in a big way and overall these are very expensive stocks,» says Anand Tandon, Independent Analyst.

What is the view on IT and FMCG? Would you be a buyer in select IT and FMCG?
Well, FMCG perhaps more than IT. There is no doubt both of the sectors have been under-owned and have underperformed quite considerably. Right now, I think the market is looking for areas to rotate into given the fact that the sectors that have actually led the rally so far, which has been mostly PSUs and so on may take a breather for a while and therefore, even though there are no great upticks that are likely in IT at least, one is still looking for sectors which have not moved so far.

And in that context, I think is what you are looking at the moment we are seeing today. There is some case to be made for domestic consumption players to move up, especially those which are related to rural incomes because that will undoubtedly have to be one of the areas which the new government has to focus on and from that context is what I said that I would prefer FMCG kind of stocks more than perhaps the IT ones.

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