HSBC's Tushar Pradhan believes FMCG sector will struggle a bit from hereon, here's why

Tushar Pradhan, the chief investment officer of HSBC Global AMC, spoke to CNBC-TV18 about the fundamentals of the market and shared his views on sectors such as the FMCG and banking.

When asked whether there would a re-rating for the financial sector post the fourth-quarter earnings, Pradhan said, "The earnings have been more or less on expected lines. It is difficult to see whether there is going to be re-rating back to the previous levels of valuations because a lot of expectations were build up in terms of growth but most of the banks, NBFCs have curbed their growth expectations. So, there will be time for consolidation before we see any re-rating in the sector going forward".

Talking about the FMCG space, he said, "There has been significant upside to earnings and margins in the last three years. Some of the companies have done exceedingly well and have outperformed the index, as well as the broader set of companies by a very far margin,” said Pradhan, adding that the valuations now has gone through the roof.