Sanjay Mookim, strategist and head-equity research at JPMorgan India, on Thursday, said that a couple of quarters are likely to be challenging for the auto and fast-moving consumer goods (FMCG) sectors.
Speaking in an interview with CNBC-TV18, he said, “In the near-term, we expect domestic consumer facing companies to go through a soft patch and this could be discretionary, autos, staples as categories.”
“The reasons for these are obvious. Most companies will struggle with topline, the effects of the lockdown and second wave (COVID), and these companies will also grapple with continued margin pressure,” said Mookim.
On NBFCs, he said, “If we are assuming that the Indian economy will improve post-COVID, it has to be through credit and lending. Therefore, an investor portfolio should be focused on financials, which are able to deliver; whether it’s large private sector banks or select non-banking financial companies (NBFCs), which have the ability to drive and deliver growth.”
For the entire interview, watch the video.