Pharma, FMCG look safe: D Mehta

Dipan Mehta, Member, BSE/NSE is of the view that pharmaceuticals and FMCG is looking safe at this point of time.

Mehta told CNBC-TV18, "There are a few defensives sectors and the one that comes to my mind instantly is Indian pharmaceuticals given that they benefit from a depreciating rupee. At the same time the prices over there, product prices have not corrected as much. So we could see that volumes remaining stable for that segment and profit margins moving on account of better gains on the foreign exchange currency side, so that seems to be a safe sector at this point of time. Also FMCG is also something, which seems to be pretty stable at this point of time. We have seen decent results coming out for the September quarter for most of the FMCG companies. So these are two sectors, which appear to be safe at this point of time and investors could park and be overweight in these two segments."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.

Source: Moneycontrol