With the rupee inching towards the 70 mark vis-a-vis the U.S. dollar, the information technology and fast-moving consumer goods sectors are the ones to bet on, said Andrew Holland, CEO of Avendus Capital Alternate Strategies.
“FMCG is a defensive sector, so you can hide there. Besides, all companies in the sector are growing well,” said Holland. "The long-term story for the sector is compelling.”
Highlights from the conversation:
On Markets And Earnings:
- Markets continue to ignore high valuations.
- Earnings season has been pretty okay.
- Nothing on the horizon which will get investors excited on the earnings front.
On The Rising Dollar:
- Could lead to more turmoil in the global markets.
- Seeing a lot of bond outflows from emerging markets such as Argentina, Brazil, Turkey and Indonesia.
- Can expect downside for the Indian markets.
Sectoral Picks:
- FMCG and IT.
- PSU banks likely to be hit on loss in market share and huge bond losses.
- Automobile sector is currently in a phase of consolidation.
- Not comfortable with oil marketing companies at current levels.
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