In a chat with ET Now, Rajat Jain, CIO, Principal Mutual Fund, shares his views about FMCG and pharma space.
Indian market has two ends; one end which is the FMCG/pharma and the consumption space which is trading at a multiyear high. The other end is infra, real estate and machinery stocks which are trading at a multiyear low. Which part of Indian market will get re-rated or de-rated?
The thing which is already high as you pointed out, FMCG and pharma potentially well they can only at some point of time de-rated if the kind of growth expectations that the market builds in do not come through. Gradually if you see cap expenditure comes back in, their work in construction space which kind of reasonable if people make reasonable margins again. The capital good/construction companies can get re-rated but market will slightly take some time before it re-rates, it would not rate them in a hurry. If they see companies making margins, funds again and see capex orders coming in that will happen but it will take some time.
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'I made my money by selling too soon.'
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