Why you should book profits in FMCG space, S Krishna Kumar of Sundaram MF explains

On the US-China trade war worries, Kumar said, "The market should learn to deal with these trade issues than getting worried about it. From India perspective, we are too small to have linkage from the trade perspective and in fact, would be beneficiary of US-China trade war. However, near-term political expectations would drive market positioning."

With regards to earnings from the consumer goods companies, he said, "It was expected that the topline growth would be soft, as well as pressure on margins. So the numbers are broadly in-line with expectations. Valuations in the space are already high and offer little scope for expansion. This could continue to be the trend and people would take off money from the space. So we have been underweight space".

Talking about the selloff in auto stocks, he said, "The companies have a strong balance sheet, high free cash flow generation expect Tata Motors. Fundamentally, would look at these companies more positively and use slowdown in these sectors to add up more over the next three months.”